A derivative of the common phrase, thats what she said, is that what you told her is a response to any sentence that contains sexual innuendoes. It is best used in a sentence involving fitting something into a hole or something being inadequate.
Hym "Is that what I meant when I said it? So, either you're illiterate or you know you're being a piece of shit and you think I'm not going to do anything about. Ok. The ONLY... Thing I am going to do in life... Is something about that thing you did just there. I refuse to do anything other than that."