A fusion of the words stupid and idiot. Used to describe a person of extreme imcompetence. Or a stupid idiot.
George Bush: I just launched 50 million nuclear bombs at Iraq.
Dick Cheney: What, you stupidiot you aren't even president anymore!
Guy1: Hey I hooked up with this hot chich named Bob.
Guy2: BOB?!?!? That's a boy's name you stupidiot, and my Bob is my brother!!!
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