Originated in the town of Sussex which is located in Wisconsin. The term reefers to the words you yell while in the act of throwing a (usually large) object through your or a coworker's/bosse's office window (most commonly in an industrial environment).
-To add effect-
-from a high office overlooking work floor
boss- "WHAT DO YOU MEAN WE BEHIND 300 UNITS!!!"
boss- " DAMN WORKERS AIN'T DOIN SHIT!!!!!" (Dwads)
boss- (throws chair through window over production floor)
It is said of the situation where a person has the bad luck to make contact with his testicles against an undefined surface or object, intentioned or not.
Given the nature of the word, it is more appropriate to design cases where the interaction is made with a moving object, for example, a ball.
Although it is extremely painful for the victim, it tends to be considerably funny to people who witness it.
Today in the baseball game the pitcher took a nutshot; the baseball hit him in the nuts.
Man, I just watched the funniest nutshot video ever.