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Compensating 

1. the act of offsetting an error, defect, or undesired effect (such as a small penis, or lack of being fly) by being or doing something superfluously grandiose (such as flaunting a kick ass ride or building a third floor on a two story building to make its residents fallaciously feel hip).

2. see compensation, compensate
hot blonde girl: You think I should bang that guy with the lambourghini?
hot brunette girl: who? that short guy?!
hot blonde girl: yeah.
hot brunette girl: Ew! No! He's totally compensating.
hot blonde girl: Whatever! He's got a lambourghini.
hot brunette girl: I was talking about his penis.
hot blonde girl: Oooh...ew, never mind.

Endowed Resident 1: Why does that dorm have three floors when the other dorms only have two?
Endowed Resident 2: They're compensating.
Endowed Resident 1: For their picos pequeños?
Endowed Resident 2: That and cause they're really lame.
Endowed Resident 1: True.
Compensating by Kitchen President September 2, 2009
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compensating 

Hiding the fact that you have a tiny dick, by wearing large objects.
If a guy is eating a 7in. hot dog, he is probably compensating.
compensating by AdvancedCheatah November 29, 2017

Compensating 

When a person supplements fake objects also known as proxy's in the hopes of owning the originals eventually.
Player A: Hey do you own a version of that proxy.
Player B: No but one day I will!
Player A: Oh so you are compensating then!
Compensating by The Blacker Lotus February 18, 2020

Compensating 

When you take huge measures to look good by getting flashy expensive stuff to hide the fact that you have a small penis, ugliness, bad body image (for guys) or small/flat tits or ass (also using implants), overusing make up to cover up your hideous face or loose saggy vag.
Wow shes using a lot of make up and implants, you think shes compensating for something

Hes got a lot of big cars and a huge mansion is he compensating for something
Compensating by Carljohnson.gta February 15, 2022

compensating 

when someone has a really huge pickup truck to compensate for a below average penis size
well endowed male: why the fuck is your pickup truck so big
small pp male: i'm compensating

Theory of compensation 

Theory that states in cases where a woman has small breasts, this is compensated for by her having a nice ass. This theory does not necessarily work in reverse.
"Ah, her tits are too small!"
"Yeah, but check out her ass."
"Hmm. Theory of compensation, eh."

compensation truck 

A truck with either, extra large wheels, raised body, smoke pipes or a combination of all 3 which are driven by guys (possibly women) who have small dicks. One's need to impress ladies is done with the ridiculous truck size that attracts attention away from the lack of size in other places, or place. Thus compensation trucks are used exactly for, compensating.
Dan: I just bought this new truck, it's raised. Im hoping that girls won't notice my small dick as much anymore now that i gots this HUGE truck!

Joe: Dude, that shit works soo well, my truck gets all the ladies. Im buying smoke stacks, here cumm the ladies ;)

("Ladies" walking by)
Lady 1: HA HA HA! Look at those stupid compensation trucks...LOSERSSS
Lady 2: We all know what they're compensating for.