Status-loling is the act of visiting someone's Facebook page and commenting on each of their actions possible (ie; new groups joined, new fansite, new friends, new profile picture, new application, ANYTHING Facebook allows you to comment on) with lol. You have to comment each and every action you comment on with "lol". This is highly amusing for the perpetrator just thinking of the reaction from the victim as they will get a number of notifications, get all excited, but then they realise...they've been status-lol'd!
charlie: whoaa, look at all my facebook notifications - i must be pretty popular at the moment
dude: thats pretty cool, dude.
charlie: oh wtf!? someone commented everything ive done with "lol"!!? who the fuck does that!?
dude: dude, you just got status-lol'd...