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1.
To be vashbad one of these must be true: a) one must be so bad that if they are in a mile radius of a bad-o-meter, the bad-o-meter breaks. b) One must be extremely terrible beyond a normal degree. c) One must have just performed an act that displays a complete lack of skill, intelligence and/or common sense.

This is derived from Vashtii, from the WoW server The Underbog, for being so terrible that he is the motivation for a new adjective.
a)
Bob: Whoah! My bad-o-meter just broke.
Jim: Hey Bob.
Bob: Hey thanks Jim, you're so vashbad that you broke my bad-o-meter.

b)
Jim: How is your kill to death ratio negative?
Bob: I don't know. I think I'm just bad at this game.
Jim: This is worse than bad. this is vashbad!

c)
Jim: I just put my nuts in a chipper!
Bob: You are fucking vashbad!
by LOLVASHBAD May 11, 2008
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