Sentence:  "Speaking of being <WSD>duded</WSD> out …" He shrugged, then handed her the bag. "Here. This is for you." / She reached inside and gasped as she pulled out a white suede western style hat. A glittering gold braid encircled the brim. / "Oh, Zack! It's beautiful. Thank you." 
Meaning of the word marked with <WSD> tags:  "Usually followed by" '''(up)''': to dress up, to wear smart or special clothes.