Resembling or shaped like a cup; having a cup-like form or quality.
From cup plus the adjectival suffix '-y', a common English way to turn nouns into adjectives meaning 'having the quality of' or 'resembling'.
Words ending in '-y' are some of the most playful in English—'cuppy' feels informal and descriptive in a way 'cup-shaped' doesn't, and children's product names (like 'sippy' cups) show how '-y' words feel friendly and accessible.
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