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A word used after one gets insulted by another. It is usually said by more than one person to exaggerate the severity of the insult. The worse the sting of the insult, the longer one says this word. This term was originally used by Robo no Hana in the video game "Flying Dragon." A teenager who goes by the name "MRC" resurrected the word and used it by the method stated above.
Person 1: "Mario is poopoo baby?"
Person 2: "Yeh, he is."
Both: "Doolay!"
doolay by Edgar Ma May 13, 2008
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doolally 

Grazy, mad, dizzy headed, round the bend.

I believe this word originates from "Deolali" which is a former site of a British Army transit camp in India where soldiers were sent to recuperate if they were considered to be under traumatic stress as it's know today.
She's gone a bit doolally - she's gone a bit mad
doolally by maididdy July 16, 2015
Related Words

doolamac 

High grade marijuana or marijuana laced with cocaine. Referenced in the Master P song Bourbans and 'Llacs off of the Album Ghetto D.
This is for the Burbans and the Cadillac's
With the tens and twelves bumpin in the back
This is for the players smokin doolamac
Slappin skins, makin dividends and riding strapped
doolamac by Olyroller April 26, 2011

Doolabaka 

One who does not regard society as they should; A fucking moron.
Jack stop being such a doolabaka, we're going to get kicked out
Doolabaka by Dunkleboobs November 4, 2021

Hooly dooly ! 

Aussie version of "Holy Moly" or variants. Slightly archaic/rural (read: Westie/Bogan etc), but still sometimes used by kids in front of Authorities. Also spelt "hoolEy doolEy"
"Hooly dooly ! That was close Constable/Headmaster! "
Hooly dooly ! by Bronteboy January 10, 2012

doolally 

He is completely doolally.
doolally by dan February 22, 2004

Holy Dooley 

Holy Dooley is an Australian term for an exclamation of surprise - similar to "Good Heavens", "My goodness" and other such remarks.
Holy Dooley by pearlygirl319 December 2, 2011