It means BYOB but fun is substituted for booze. This is done because alcohol often starts the fun. The lone Sober person at a party does not usually have any fun.
Fun is also substituted as a code word so that minors don't have to worry about adults figuring out what is going to go on at a party.
The fact that it sounds nerdy and innocent makes it ironic.
The act of putting your arm all the way to your elbow...or more specifically your funny bone..... inside any Orifice that will take an arm that far. For example..... anal funny boning is different then vaginal funny boning which is different then oral funny boning.