when something is so funny that you literally piss yourself laughing.
dude 1: did you see the sketch that billy connolly did about putting a condom on inside out?
dude 2: haha, yeah it was piss funny.
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The Act of Something or Someone being in the State of Such Concentration and Hilarity, That they have an Involuntary Eruption of Urine; To the Effect that their Pants are Completely and Utterly Soaked in Their own Urine.
"Mitch Hedberg was Piss-Pants Funny!"
"Dude, That guy Falling down the Stairs was Bad, But Piss-Pants Funny."
Man, Yo Momma is So Ugly, She's Piss-Pants Funny..."