Literally translates to "I am laughing because I just now remembered that butts exist," but meaning depends on usage- can be an insult, a compliment, an observation or a question.
Frank: "Hey, I just joined a frat."
Paul: "lol butts"

Shawna: "Do you like my new haircut?"
Paul: "lol butts"

Paul: "lol butts"
Steve: "I agree."

Paul: "lol butts"
Steve: "No, we lost it a few weeks ago."
de Gus 10 Noiembrie 2004
6 Words related to lol butts
When someone kills a noobie a in a public counter-strikes server.
Evan killed Tommy with an ak47. Evan shouts "lolbutts!"
de Evan Leepster 01 Septembrie 2007

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