Swag is slang for "cool stuff". It usually describes apparel or accessories.
Apparently its also a word that enrages the kind of person that likes to throw around the word "faggot" or still uses "gay" as an epithet. This kind person also dislike hipsters or anyone that appears to know more then they do about current trends.
Person 1: Only faggot hipster douchebags use the word swag.
Person 2: You're a miserable fuck.
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