The story
From the Book of Isaiah verses 48:22 and 57:20-21, originally Hebrew. First attested in English in 1535, in Coverdale Bible of Miles Coverdale. Quoted in biblical sense for centuries, humorous secular sense popularized from 1930s, particularly due to use as title of popular Little Orphan Annie strip by Harold Gray in 1933. According to rabbinical tradition, the word “wicked” refers only to king Nebuchadnezzar II and his descendants.
Etymology from Wiktionary, CC BY-SA 4.0.