An award given to someone who, based on what he or she just said, is a badass. Usually given to make fun of someone who talks himself up too much.
Mike: "So I did like 25 shots right, and like I wasn't even that drunk, then this cop tries to pull me over for drunk driving. So I speed the fuck out of there doing 150 miles an hour and outran his ass. Fucking pigs. Then I met this really hot chick and I nailed her the same night. It was awesome, but you know, that kind of thing happens to me all the time."
Pete: "Whoa, we've got a badass here. Time to break out the badass hat."