Occurs when you have a misunderstanding between you and someone you have talked to for a long period of time on the internet. Misunderstanding like a fight, or betrayal on both parties. Blip flip is properly used in this situation if the two parties in the blip flip agree to forgive each other and still remain friends on the internet.
Person A: My friend (person C) on the internet just told me she was actually a guy!
Person B: Oh man, that's bad.
Person A: I need revenges!
Person B: Let's do it!
Person A: I'm sorry I betrayed you and exploited you on the internet.
Person C: It's okay, I betrayed you too.
Person A: Still friends?
Person C: Yes, still friends. Let's call this little fight a blip flip. Because we can't find the proper words to use.