When two or more person's are located in the same area and are communicating back and forth online through lap top computers (appearing like the game BattleShip).
When you post something on someone's news-feed (etc.) that would be an example of sinking their ship.
Also if you overload a person with notifications you have just "sank their ship".
The cause of this action will lead to LOLing, or LOL circles with your Battleship members.
"Damn it Kelly, you're Sinking my Battleships."
"Dude when we get home you wanna Sink Battleships?!"
"Let's all just sink Elliot's Battleships when we get home."