Contrary to the popular geographical definition of "Ghetto formation" the actual meaning originated from the early days of gangsta rap.
A ghetto formation is when a large group of African-American gang members and general street thugs assume an organised military formation for either defence against the "one time" or an all out attack on white suburban neighbourhoods.
Sgt. Maxwell - "Right guys there's a meth lab in number 25, we need to move fast to keep public injuries and inconvenience to a minimum."
Officer Rogan - "Sir, it appears that the natives have formed a ghetto formation and we have no access to the street without being massacred by these pipe hitting bitches."
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