To end a situation of your making because it has gotten out of control.
To call an end to a situation that is heading in a direction you don't like.
Usually used in a humorous manner to highlight that you don't approve of a situation
You organise a work social event and after a few hours it is descending into drunken chaos so you call 'OK, shut it down'.
You and friends go to see a movie that turns out to be of poor quality or distasteful so as it gets to a particularly bad scene you call 'Shut it down' as you walk out.
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