Derives from trying to type "Hahaha" with Swype on a touchscreen smart phone. The term is flexible and can be appended with other additions, such as "holy handbags" or "Oh my handbags."
Holy handbags, I just saw a homeless dude chug a whole bottle of MD 20/20, then grab his junk.
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Pulling down one's pants to fart, particularly (but not limited to) farting on an open fire.
"I'm about to run squatchy on this fire."
"Steve got so drunk he squatchied on his girlfriend in bed."
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