A term originally used by Markiplier meaning that a certain occurrence is very unpleasant and utter bullshit.
It is derived from the not-so-fun game of jerking off in a circle around a cracker and the last one to cum has to eat it. Therefore, the term "circle-jerking bullshit" just means that what just happened was stupid and irrational and extremely, extreeeeemeely unpleasant.
"This game doesn't fucking work! Every time I move, I die -- it's just fucking circle-jerking bullshit!"