Snowbunny/Snowbunnied is a more "friendly" way to say "white-washing," most likely because the topic of white-washing itself is very uncomfortable for most folks, so they wanted a safer and more inconspicuous word to use that made them feel better/more comfortable while discussing such awful things.
It may also be used in an attempt to hide discussion from people in public spaces or social medias, who would otherwise attempt to insert themselves into the conversation in order to spout their unwanted, hate-fueled opinions, essentially ruining the conversation for everyone.
A: "I found this upsetting fanart of my favorite comic book character yesterday. You gotta see this."
B: "Oh, what the hell? They snowbunnied him, man!"
A: "I know! It's ridiculous!"