When someone does something awesome, but continues to milk it for more than it is worth. When your friend gets an amazingkill in a Modern Warfare and continues to brag about it.
Guy 1: Dude did you see that I got a head-shot on that guy from across the map.
It is said of the situation where a person has the bad luck to make contact with his testicles against an undefined surface or object, intentioned or not.
Given the nature of the word, it is more appropriate to design cases where the interaction is made with a moving object, for example, a ball.
Although it is extremely painful for the victim, it tends to be considerably funny to people who witness it.
Today in the baseball game the pitcher took a nutshot; the baseball hit him in the nuts.
Man, I just watched the funniest nutshot video ever.