A very abbreviated way of saying: "that's mildly unfortunate for you but also funny for me." A play on its typical denotation of being an expression of high respect and compassion towards people who've recently experienced a tragic event. Typically either used alone or in conjunction with lol to create lol f, context sensitive but both expressions mean essentially the same thing.
Person 1: I joined my professional zoom call an hour early and was wondering why nobody was there.
Person 2: lol f
Gamer 1: Aw man I was one kill away from getting a really good score streak and I was killed with a broken weapon bruh
Gamer 2: f