1. Not just a fag, but one that is associated with potatoes.
2. A simile to Douchebag only it's much more fun to say.
3. People who think they are cool because they follow a trend literally everyone else is part of.
1. That Harley rider likes to eat potatoes. What a fagtato!
2. "You used to be a douchebag, but now you've become a fagtato, Fagtato."
3. James bragged all day about his new iPhone 4S and called me poor because I still have a 3G, what a fucking fagtato!"