Combination of the words "bat shit" and the suffix "-istan" ... (as in Afghanistan, Pakistan, Turkmenistan and other nut-case Middle Eastern countries).
Used as the fictional home country of a person, who does, or says, something incredibly moronic.
Did you see Tyra Banks on last night's episode of "Top Model?"
She made the girls dress up as their favorite kind of anal lubricant.
"What a nut-job! She's definitely the Queen of Batshitistan."