To be in a bad mood, to be pissed off about something.
"He's back! - and this time he's got his arse in his hand" - advertising poster for Terminator 3.
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Used to describe a person who is in a bad mood
Don't expect a smile out of him- he's got his arse in his hand
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Dejected, disconsolate, disappointed, depressed.
Ever since he failed to get that promotion, Jerry has been walking around with his arse in his hand.
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