In Spanish (or Mexico's DF, at least) means a guy who wasn't circumcised, or just as the adjective "uncircumcised". This comes from Cheetos, a brand of crunchy, cheesy, irregularly-shaped crisps from Frito-Lay. I think it can also mean the actual uncircumcized member.
Ese tipo es cheto.
Ese cheto es un bendejo.
He's a cheto because his uncircumcised schlong looks like a Cheeto.
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