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It's an alternative phrase for "That sucks".
Leeches suck so if something is a leech, then it sucks.

B. 5/31/17
1. Friend: Man I just failed my final

You: Dang that's a leech
2. Friend: *sings terribly*

You: Stop man, you're a leech at singing
by Nicemanberries May 31, 2017
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