The imaginary, fantasy, role-playing life that gamers have instead of a real life. The sad thing is that a lot of them think it's real or prefer it to reality. Some of them can't even tell the difference between a cyber life and a real life.
Josh is such a sad case. He spends so much time playing WoW that he thinks his cyber life is his "real" life - and that his real life is fantasy.
Full phrase: "What crawled up your ass and died?" It is said after somebody farts and the smell is so horrible that everyone in the room runs out gagging. The implication is that the fart smells as bad as, for example, a rotting dead skunk or maggoty rat.
Todd's fart was so overpowering that Ben said, "Man, you stink! What crawled up your ass and died?"