Akin to "gaslighting" and "bladerunning", "fairydusting" is an another oppressive force that's made to distract and conquer and in this case; gay men. Stems from the story of Peter Pan in which Wendy and her siblings use fairy dust to to loose ground and properly fly into a world of highly offensive stereotypes in which they were oblivious realizing just that.
Basically, it means "the regressive process in which you convince a (white) gay man he's exempt from bigotry (sexism, racism, classism, transphobia, ableism etc.) solely because of his sexual orientation".
-"Why Paul compulsively judges other womens fashion choices, can't take no for an answer and constantly have his vocal blackface on is because fairydusting got into his coming-out process. He's far off the Earth at this point."
Mainly in (queer-dense) fandoms, a gay man who proudly fantisizes about straight vanilla relationships of the characters involved. Usually a careerist, but can appear anywhere else if he's conservative enough.
After gay author and Danish citizen Hans Christian Andersen who got popular with his heteronormative fairytales.
-"David is such a Hans Christian. I mean, SonAmy is great an all, but it's not that special. And shouldn't he push for gay ships, since he's gay himself? Talk about supression of expression!"