With a little internet research, information can be found.
There actually seems to be two theories of the origination of the name cupcake:
1. by the measurement of ingredients in the cake...cup of flour, cup of sugar, etc.
2. by the fact that they were originally baked in cups.
The first reference can be traced back to 1796 in a recipe written by Amelia Simms, the American Cookery, with a notation about a cake to be baked in small cups.
So was it America or somewhere else?
Well there are other references to Queen Cake that was apparently a lighter version of fruitcake that was popular in the 18th century in England.
It's possible we may never know, but America has a close tie and history with Great Britain, so...
it's food for thought.
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