SML, short for "Shit Myself Laughing," is an acronym used to describe an extreme reaction of uncontrollable laughter. It refers to the hilarious situations or jokes that are so ridiculously funny that they provoke such intense laughter, metaphorically causing one to lose control of their bodily functions.
When someone exclaims "SML!" or uses it in conversation or online, it signifies that the laughter was so uproarious that it almost reached the point of literally losing control of their bodily functions, specifically in the form of "shitting oneself" due to excessive amusement.