When something evokes such a strong emotional state that you pee your pants, but it is entirely acceptable because the event is so grand. IE: You laugh so hard you pee.
#1
Ted: Dude, be prepared to laugh... check out this YouTube clip!
Ned: *watches* OMG! LOL! LMAO!!!! Dude! That was totally peeworthy, I couldn't catch my breath!
It is said of the situation where a person has the bad luck to make contact with his testicles against an undefined surface or object, intentioned or not.
Given the nature of the word, it is more appropriate to design cases where the interaction is made with a moving object, for example, a ball.
Although it is extremely painful for the victim, it tends to be considerably funny to people who witness it.
Today in the baseball game the pitcher took a nutshot; the baseball hit him in the nuts.
Man, I just watched the funniest nutshot video ever.