The Collaborative International Dictionary of English v.0.48:

Scuttle \Scut"tle\, v. t. [imp. & p. p. Scuttled
   (sk[u^]t"t'ld); p. pr. & vb. n. Scuttling.]
   1. To cut a hole or holes through the bottom, deck, or sides
      of (as of a ship), for any purpose.
      [1913 Webster]

   2. To sink by making holes through the bottom of; as, to
      scuttle a ship.
      [1913 Webster]

   3. Hence: To defeat, frustrate, abandon, or cause to be
      abandoned; -- of plans, projects, actions, hopes; as, the
      review committee scuttled the project due to lack of
      funds.
      [PJC]