a phrase meaning something to the effect of "you know that thing you where promised to be rewarded after you completed this task? well, it doesn't exist". could also be described as being trolled. the term was coined by the video game Portal in which your player would navigate through a labyrinth of tests while being driven to continue by the promise of cake. towards the end of the game, i becomes clear that there is in fact no cake and your efforts where in vain.
Employee 1: "I am soooo gonna get that raise man."
Employee 2: "Nah man, the cake is a lie"
Employee 1: "Well shit...."
guy: "omgz, awesome! if i complete these 4 offers from this pop-up, i can get a free ipod nano!!!1!"
prosecuting attorney: "we are finally going to put this person away!"
Jose Baez: "nope, the cake is a lie"
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