Faze (v.): to disturb, daunt, or unsettle, from the Middle English fesen, meaning to frighten or drive away.
This word is not spelled p-h-a-s-e. If a young child, a supermarket cashier with a grade 6 education or a non-native speaker of English made a mistake like this, I wouldn't bat an eyelash. To find it on MSN News, a site that has recently taken to advertising itself with the arrogant slogan "No one wants to look dumb," is just irritating.
If you don't want to look dumb, MSN, perhaps you should encourage your editorial team to crack a book once in a while.
(For the record, it's not pronounced "fizz," either. Image from thechaly.files.wordpress.com)