"expose false or nonsensical claims or sentiments," 1923, from de- + bunk (n.2); apparently first used by U.S. novelist William Woodward (1874-1950), in his best-seller "Bunk;" the notion being "to take the bunk out of things." It got a boost from Harold U. Faulkner's "Colonial History Debunked" [Harper's Magazine, December 1925], which article itself quickly was debunked, and the word was in vogue in America in the mid-1920s. Related: Debunked; debunking.

Wets and Drys, Fundamentalists and Modernists, are busily engaged in debunking one another to the delight and edification of a public which divides its time between automobiling and listening-in. Is it art, or education, or religion that you prefer? You have only to get the right station and what you last heard about the matter will be cleverly debunked while you wait. [Carl Vernon Tower, "Genealogy 'Debunked'", in "Annual Reports of the Tower Genealogical Society," 1925]

It was, naturally, execrated in England.