It means Childish Humiliated Ass Dweller and originates from the 1984 film C.H.A.D. But it is now used to describe ugly ignorant people using other peoples ideas to gain infamy. Most notably used in the Kevin Smith movie Clerks 2 (2006). The phrase is mostly used in the United States but is now starting to become popular in the UK and picking up popularity in Paraguay, South America due to the El Chad that is popular amongst country side people in said country.
John: Why don't girl's like me?
Frank: You really don't know dude, you are a fucking Chad.

Mother: When do I get to see my baby?
Nurse: Are you sure you want to?
Mother: Yes, of course, why?
Nurse: Well because you baby is so fucking ugly, it must take after you as you are the textbook definition of El Chad.
by Professor Atom September 5, 2018
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