This may be stretch but I think it comes from the German word schuppe or schuppen which means flake or scale.
Since the manga is about a sword master I like to think the name Schuppe refers to Blacksmith scale, the black iron oxide (Fe3O4) that forms when hot steel comes into contact with oxygen during the forging process. It is similar to rust and can be considered a byproduct of blacksmithing. Additionally, hammerscale is a flaky byproduct that results from the iron forging process.
If true it gives insight to a character that has lost a lot in the process of forging who he currently is. Then again this could just be my own head-cannon.