I used to work as a replacement teacher, which, when you're under 25, petite and there for only a few days is not the easiest of tasks. Some classes were quite mixed ethnically, with the majority of students being the children of immigrants. Their typical complaint to any reproach or punishment was: "But Miss, you can't do that! You're a racist!" It seems to happen to friends who sub as well. So I suppose these kids know that accusing someone of racism is supposed to be a good excuse (even though, if you want to give detention to a teen for lighting a lighter in class, it's unlikely that it's because of 'racism') and then it evolved into a synonim for "mean or bad". I thought maybe it was a habit that American kids might have too.
Incidentally, I still don't get why on earth
Princess could be in any way considered a racist name, is it because it's more common amongst African Americans?