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The term collapsar is used for some types of powerful supernovae termed hypernovae. The term stems from a theory of long gamma-ray burst (LGRB) production termed the collapsar model, this model associating LGRBs with hypernovae which, in turn, are presumed to be essential a specific rare type of core collapse supernova that can occur with post-main-sequence stars that are rotating rapidly.
I believe the term collapsar was earlier coined to mean collapsed star, i.e., a compact object, but I think that usage of the term was limited. The collapsar model associated LGRBs with some collapses that produce such objects. However current usage of the term collapsar is as described above.