1 (n) public humiliation due to the disclosure of one's use of chunky peanut butter as a personal lubricant
2. (v) To humiliate one's opponent in an obscene manner.
Noun usage: Luke felt peanut butter sponged after having mistakenly left evidence of the previous nights escapade in the kitchen sink.
Verb usage: Simon didn't just win the contest - he totally peanut butter sponged Erik's pathetic challenge.