The term applied to situations or objects which are
rigged,
unfair, or merely fucked up. This term comes from the fact that many punchbowls are spiked, and therefore put those
drinking from the punchbowl at an unfair advantage against those who understand that its contents are laced.
"Man, did you hear about George
Bush winning the
election?"
"Yeah, dude. That was some punchbowl shit, right there."