This is the "cool" version of LOL. It has the same meaning as the original LOL but it sounds cuter when you say it out loud ;)
Picked it up from some guy in our WoW ventrilo, and now I've seen other ppl use it aswell.
Boys who enjoy yaoi (a genre in Japan that contains sexual and/or romantic relations between two men); literally translates to "rotten boy"; corresponding female : fujoshi