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This is a word used to describe a town in England called Ipswich, mainly used (but not exclusively) by people who don't live in the town but in neighbouring towns to describe that they think Ipswich is a shit town.

The term ipshit is also a favourite with Football (soccer) supporters.
Argh man I'm not going to uni in ipshit.

There's fuck all to do in ipshit!

Did u hear bout the ipshit prozzy murders?
by Gangsta5367 July 27, 2009
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