1. Demonstrating poor sportsmanship
2. Letting your anger get the best of you and exhibiting that anger in front of other people.
"As Neil refused to shake the other player's hand, the man said, "Don't get degraded, now!"
see also: noob, hax, lolz, lolx, plz, plx, plox, kthxbye, jajajajajajaja(which is used often by BR) and today's usage leet.
There are too many words like these to continue. Most of these are used for online games and/or forums.
Anyone using the above written terms has officially degraded as a human.