As revealed in the South Park episode "The F Word", the word "fag" in the modern day relates to losers, not gay people. Still, South Park posits a much narrower definition:
Fag (făg) n.
1. An extremely annoying, inconsiderate person most commonly associated with Harley riders.
2. A person who owns or frequently rides a Harley.
Also see, bike-curious.
Person 1: (screaming over the annoying noise) Look at those fags riding on Harley bikes, so loud and obnoxious!
Person 2: )screaming back) Damn fags, get out of my town!
An offensive term for a gay man, and the word used to refer to cigarettes in Britain, but also a word that may also be used lightly by one gay man referring to another. Being reclaimed in the spirit of "queer."
Pete: Hey, that Johnny's hawt! If only he was a fag!
Ash: Haven't you heard? He's at not at this bar just for kicks!
Pete: No way!
Ash: Way!
Pete: I'm gonna buy that Mary a drink!