When you are confounded, you are confused. Often, we use this word to describe people we don't understand, as in: "He confounded me."
Besides meaning confused, confounded can also be used as a mild swear word, like — but less objectionable than — damned. We might say, "You are a confounded liar!" It is often used to describe people who act differently than expected. When basketball great Michael Jordan left the sport to play baseball, it confounded fans. When someone does a confounding thing, it leaves the rest of us confounded: in other words: at sea, baffled, befuddled, bemused, bewildered, lost, or mixed-up.