Use 'louse up' in informal settings, like conversations with friends, not in formal writing. I hope I don't louse up my speech in front of everyone.
Pro Tip 2/3
Negative Outcome
'Louse up' implies a mistake leading to a negative result, showing disappointment or frustration. He really loused up our chances of winning the game.
Pro Tip 3/3
Colloquial Origins
Originates from 'louse' being a pest; 'louse up' metaphorically means making a situation 'pest-like' or troublesome. Don't louse up your room by leaving dirty clothes everywhere.