I was reading some news on msnbc.com and noticed this new spelling of the abbreviation for "knock-out," which is, of course, "KO." Although it is sometimes seen as K.O. And in a past tense, KO-ed. Or K.O.-ed.
But I've never seen it as "kayoed."
Poor IPFW! I turned the game on just at the point where they lost a 10-point lead. Just in time to see them get kayoed!