The act of being brutally tortured and raped in the butt with sticks before being shot fatally in the head. Although traditionally used to describe events associated with deposed North African dictators, the exspression now has broader meaning and application, including use as a future tense threat.
Example 1: Dude, did you here what happened to that cannibal serial killer in prison? They totally Khadafied him in the shower.
Example 2: If you ever touch my bitch again, I'm going to Khadafi you, real hard.