It is meant to offend your friend and your enemy, and is also an offensive word that makes you seem funny whereas in reality (to any outside party not involved in the fight and/or palling around) it's quite stupid and ridiculous.
The word bungalow is just an unusually used word to add an odd quirkiness to it, seeing as many people do not use the word bungalow.
The word chode in itself is and odd and gross word that can be offensive. Which is why the entire word is goofy, yet insulting at the same time.

Running for exercise and picking up trash you find along the way. It's good for the body, mind, soul, and environment! Started in Sweden but is making its way to the U. S.