“Blew” in this context means he flopped in the trial— as in he clearly lost. His friend didn’t attend the trial and as a result the judge sentenced him to “25 to life” (an indeterminate life sentence). Although Tupac mentions a few lines later that his friend won’t see parole, being sentenced to “25 to life” implies that he’ll be eligible for parole in 25 years time.
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In Ja Rule’s song “Loose Change”, a diss track aimed mostly at Em, Dr. Dre and 50 Cent, he insults Em’s parenting skills and says “…Kim’s a known slut, what’s Hailie gon' be when she grows up?” So this is retaliating, saying that Ja Rule’s kids must be terrible like him. This track is aimed at Ja as retaliation for that track anyway. He also retaliated to Ja on this issue on his 2004 track “Like Toy Soldiers” on his Encore album.
DON’T fuck with Em’s daughter. You’ll suffer for it.