Generally applied, failing to perceive something brutally obvious because you are too distracted by an insignificant detail. Specifically, failing to notice how disgusting the video "Two Girls One Cup" is because you are too distracted by how nauseating their blue eyeshadow is.
The Blue Eyeshadow Effect:
After Jamie Lynn watched "2 Girls 1 Cup, she replied, "Ewww... that was fucking disgusting. Those bitches were wearing blue shadow!"
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