In mario kart 64, the act of running over a bomb when equipped with a star while playing battle mode with three or more players. The bomb then disappears and the screen stands still, leaving that player in horrible shame and barring them from further play. While the screen stands still, the smoter has the opportunity to perform the "star dance."
Jafari: Aw, I'm a bomb. I'm gonna get you.
Dave: (gets star and runs over Jafari) In your face!
Eric and Louis: Damn, you got smoted, Jafari!!!
(Jafari sets down his controller and hangs his head in shame.)
A word derived accidentally from a typo of the spelling of spotted. Often used to describe someone wealthy who misplaced their money or is having trouble relocating it.
"Greg spooted his money."
"He is SO spooted."
"He's my little spooted." =)