Value of USD (and many other currencies) against Zimbabwe Dollar skyrocketed pretty spectacularly in July 2008. I have a Z$10^12 note at home.
This is a rare, but absolutely possible, outcome.
I don't see how it fits the case.
If your domestic currency is USD, you bought an asset (foreign currency) and that asset dropped in price to near zero.
If your domestic currency is Zimbabwe dollar ZB, then you had to *short the USD to suffer huge losses.
As gjm notes, you need a huge negative inflation rate (aka deflation) and I don't think that ever happened, at least during the fiat money era.
This thread is for asking any questions that might seem obvious, tangential, silly or what-have-you. Don't be shy, everyone has holes in their knowledge, though the fewer and the smaller we can make them, the better.
Please be respectful of other people's admitting ignorance and don't mock them for it, as they're doing a noble thing.