It is a common metaphor. The literal reference is to a firecracker (foguete) (or some other explosive device), with a fuse (fusível). Normally, you light the fuse. You back away to a safe distance. The fuse burns at a rate of about 1 cm/second. It makes a fizzling sound as it burn--"it fizzles." After fifteen seconds or so, the firecracker explodes.
Sometimes, though, the fuse just stops burning. It "fizzles out." You are expecting a "bang," but all you got was a "fizzle."
It means "something that seemed to be progressing, came to a disappointing stop."
Here is an example of how it could be used, metaphorically, in a political context. "After every school shooting, there has been a push to pass gun control laws. But, so far, every time, the efforts have fizzled out."
Another example: "Bitcoin Falls Back Below $10,000 As Recovery Fizzles Out."