1970s/80s: You are about to lie or make an excuse.

mid90s onwards: You are in bit of a soup and you have a semi-valid excuse. So you just say "funny story" and its understood that you are not going to hold your end of the bargain.
Friend1: Did I see you driving my car yesterday ?
Friend2: Funny story... I was looking for _my_ car keys and ...

Manager: How are we placed on the back order from Big Company ?
You: Funny Story.
by alwarming July 05, 2011

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