I think it's a cute nickname for a little girl (or boy), but wouldn't give it as the full name regardless of gender.
Maybe some gender-neutral names can work well (e.g. I like Rowan or Piper for either boy or girl) but don't think this is one of them, just because to most English-speaking people at least it will sound very male, because it's almost the same as Steve which is so common and so masculine.
I have met women who go by names like Andie, Bernie, Charlie etc, but they used those nicknames/shortenings by choice and had a 'proper' feminine name as well.
There's no excuse for bullying of course, regardless of what someone is called. But I can see how having a name like that could cause awkwardness both as a child and as an adult, maybe it shouldn't be that way but people who have had that experience seem to think it is, and they ought to know!