The specific moment in time a person realizes they've done something retarded. This word could be considered a broader generalization of phrases like "blonde moment" or "brain fart" etc. This also could apply to a third party as they notice someone having their moment. This would be a "retardilization" as well.
Retard - "2+2 equals 1...wait...its four! Boy im dumb. +retarded chuckle+
Ruyai - "Did you just have a retardilization you retard? I know i did! Bwahahaha!"