ETA: Success! They've stopped selling it! Here's their response:

We regret any misunderstanding caused by the name of one of the colours in our new Cut Up Collection. To anyone offended, we sincerely apologize - it was not our intention to be hurtful.

To address the issue, today we have discontinued sales of this product. For anyone who has purchased it, we will gladly offer a refund. Just give us a ring at 206.525.0847 (M-F, 9am to 4pm PT) or email us at orders@butterlondon.com.

At butter LONDON, we have always taken great pride in the cheeky, irreverent tone of our brand - but we agree with you that our latest product took that tone a bit too far.

Very Respectfully,
Leslie Freytag
President & CEO
butter LONDON

I assume they'll change the name and re-release it with their next collection. It's not the best apology ever, but they took action! I'm kind of shocked that this went so well. Thank you to everyone who tweeted or posted on their facebook! We're making a difference in the world, one nail polish named an ethnic slur at a time! ;)

Original post:

I need your help here, guys. ButterLondon just released a polish with the worst name I've ever seen. They need backlash. LOTS of backlash. Enough that they'll stop selling a polish named a racial slur. I'm so shocked and angry I can't even write this properly.

ButterLondon Releases New Polish Named "Pikey" ETA Discontinued!