The unit is spellbound and has joined the enemy ranks. Damage inflicted will disrupt the effect.
Description (PSP)
Charm is a status in Final Fantasy Tactics. Charm causes a character to perceive enemies as allies, and allies as enemies. For instance, a charmed enemy can cast harmful Summon Magic on other enemies. However, the (original) allies of a charmed unit will not perceive it as an enemy. For example, if one of the player's Summoners becomes charmed, they can cast an offensive summon on the player party while charmed, but other units in the party cannot cast an offensive summon on her. If a unit on team A is charmed by a unit on team B, Mimes on team A will not mimic that unit's actions while she is charmed, but Mimes on team B will. The only effect of charming an allied unit is to put that unit under AI control until Charm is removed.
Charm can only affect units that are of the opposite gender as the caster. Both genders can affect monsters with Charm. Physically attacking the victim clears the status.