This is a word used to describe a town in England called Ipswich, mainly used (but not exclusively) by people who don't live in the town but in neighbouring towns to describe that they think Ipswich is a shit town.
The term ipshit is also a favourite with Football (soccer) supporters.
Argh man I'm not going to uni in ipshit.
There's fuck all to do in ipshit!
Did u hear bout the ipshit prozzy murders?