A much more polite way of calling someone a pussy, unless they know wat it means. It is used to describe someone who is all talk, has no backbone, beaver teeth, and may or may not be gay.
John: Wow, wat a pusty. I was talkin to james, and he said he could beat me up, so i swung at him and he ran away crying.
Pete: wow, ur right, hes such a pusty.