1 definition by Battle Squirrel
Causing your own boat (or yacht) to blow up for the sole purpose of distracting two hostile boats that are chasing you. This is done by lighting a cigar, cutting a small hole in one of the boat engine's fuel hoses, placing the lit cigar between the cut fuel hose and the wall, turning the boat 180 degrees heading toward the hostile boats, tying a rope around the steering wheel to ensure the boat's intended path toward the boats, and jumping off before your own boat explodes, thus, performing a Panama.
Al: "What do you think Dirk?" Dirk: "Uh, I think we need to pull a Panama!" Al: "A Panama...A Panama?!" Sandecker: "Panama?" Rudi: "What's a Panama?" Al: "Navy thing." Rudi: "I didn't know you were in Panama." Al: "We weren't, we were in Nicaragua." Rudi: "So, why do you call it a Panama?" Al: "We thought we were in Panama!"
by Battle Squirrel March 16, 2018