It`s most often used to express how braindead someone is.
Similar to "Marille zamdrückt" or "Lunte rausgerutscht".
Commonly used by lower IQ individuals.
A: Are you queueing for TFT again?
B: Yes, no more eternal return.
A: Dir hats die Lunte abquetscht!
B: HAHAHAHAHA
A: HAHAHAHAHA