A catch-all term used by prison inmates in order to "hide" information that they don't want to get into trouble for discussing on the phone. Often times a reference to drugs that inmates are attempting to acquire through various means and methods. Used more frequently for this purpose on the East Coast. "Situation" can also be a reference to a territory an individual has been charged with for the purposes of dealing drugs.
"Don't uh, don't say too much, I can't talk about anything specific, but uh, I got that um, that situation coming next week."