A Sheet-Fiend is someone who goes places just to try and have sex with as many people as he can while they are there. Common places these people go to are Night clubs, parties, strip clubs, essentially they go to places where there's gonna be a lot of horny people.
"Yo did you see what Jacob was doing last night at the party?"
"No, What was he doing this time?"
"He was being a TOTAL Sheet-Fiend"
"Sounds about right"