When a friend does something that is particularly unfriendly. Anytime someone does something mean or inappropriate.
Originated from "Flight of the Conchords" when Murray shows Jemaine and Bret his "friends chart." The y axis on Murray's friend chart represents the level of friendship and the x axis shows the time line.
When Bret and Jemaine are mean to Murray and his other friend they are dropped on the y axis to the point of being at the "stranger" level on the chart.
Murray: "You drilled holes in my desk. That's a drop on the y axis..."
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