To be completely and utterly fucking crazy. It can be used to describe a noun. Mostly used to emphasize the emotional state of a person.
The teacher didn't completely erase the notes on the chalkboard, which caused obsessive-compulsive Isaac to go batshit loco and turn over his desk.
I don't know what the fuck happened, all of the sudden he went batshit loco and shit on the couch!
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Past the point of insanity, past the point of rationality. Incorperates both the meanings batshit and loco but on a much higher scale. Just losing it, the day before or maybe the day you are commited permenantly to a mental asylum.
Jim: Yo dude, whats up?
John: Not much, dave's nailing hamsters to the wall in the kitchen
Jim: WTF?!? what for?
John: His girlfriend left him for his brother, He's gone completely fucking batshit loco
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