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This word/phrase was formed as a sort of joke but really seems to have more meening.

A Toiletpaper Noose is a sort of empty threat. Like acting sad or saying "I'm going to kill myself" just for attention.

It's sad and moronic.
"Look at how sad he just got. He's just going to make a Toiletpaper Noose."

or "He's just Making a Toiletpaper Noose"
by Jake June 17, 2004