To be in, or arrive at, a most delectable situation. Also used as an exclamation in the event of a pleasing outcome.
The phrase seems to originate from the Midlands, although it is unknown whether the analogy is to cooking meatballs, or basting one's nether-regions in anticipation of a sexual act.
Tim was strolling down the street when all of a sudden his anus swallowed both his testicles, therefor his balls were in his butthole. Which brings us to the term "balls in your butthole"
An expression not meaning to put your testicals in someones face but just a term that can follow anything but not mean anything. Frequently used in Ohio. Also can mean the same as a "T-Bagging"