The nut cup isn't "celebrating" any of Iowa State's past failures.
Example of how I would use my nut cup (remember this is all for fun):
Iowa State is beating KSTATE all game in football. With 3 minutes to go in the game Kstate is driving down the field w/ the potential to take the lead (sound familiar?). I'm at home w/ my buddies watching the game (game is obviously in Manhattan). I go grab my CF nut cup and cover the ole boys before they get another kick in the junk in the case KSU scores and we lose. Hell, I might even tweet a picture of me with the nut cup covering the boys.
If you don't share the humor in that, I get it. Everyone deals with sports in a different way, but we aren't looking to "celebrate" any ISU loss.