When a member of a forum becomes prominent and widely known/widely liked, then later gets caught up and exposed for some fucked things they have done/are doing.
Originating from the ROBLOX Exploits forum V3rmillion.net
Best examples include: IcePools and Chaddy, Though other examples could have existed before them.
J: Hey dude, did you hear about the well known and liked member got exposed for harboring child porn?
D: Ah, well that's the V3rm Effect for you.
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Jewish person who plays a lot of video games, uses his gargantuan nose to hack users and sells in game items and money for USD.
Eric: Hey jason wanna visit Rolimon?
Jason: Best not, he is most likely playing video games, you know how he gets.
Eric: -shutters- yea, lets go do something else.
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Jason: Hey what time does the game start?
Jack: Ummmm.... I forgot
Jason: Wow jack you're a real Dementia Patient
Jack: I know :(