This is the 802nd most frequent Czech word.
špatné
"Špatné" means "bad" in English.
In this case, 'špatně' again functions as an adverb, modifying the verb 'zapadá', giving it the sense of 'improperly' or 'poorly'.
To špatně zapadá do celé situace.
That fits poorly into the whole situation.
The word 'špatné' is used as an adjective modifying the noun 'rozhodnutí', giving it the meaning of 'bad'.
Toto je špatné rozhodnutí.
This is a bad decision.
Here, 'špatně' is used as an adverb describing the manner in which 'cítím se' (I feel) occurs, meaning 'badly' or 'wrongly'.