This is NOT to be confused with bugly as in butt-ugly, bugly means that the named looks like a bug. This is not really an insult, there are many very hot/pretty/handsome celebrities/people who are kinda bugly.
Cute pic, you look really pretty, but a bit like a cross between an ant and a wasp!
The term was coined by the students of Graphic Design at Oregon State University in Corvallis, Oregon in the mid 1980's as a term for girls who wear darker lip liner than the lipstick applied. Bugly was a invented Rastafarrian term for a butt hole appearance of the mouth.