This is a German nickname for a penis.

Americans found it, picked it up, shoved it in their pocket, smuggled it out of the country, and then held it up Simba-style to an audience saying, "LET'S USE THIS!"

Somehow it hasn't been terribly widespread yet, though.

Somehow.
Ah, why should it be (or shouldn't be - depends on your perspective)? Because, directly translated, it means 'super monkey horny.'

no Germans were harmed in the making of this definition

A few weeks ago, no one had “cheugy” in their vocabulary . Now everything is saturated with the word. It’s in our heads. It’s in our homes. Everyone is asking: “Am I cheugy? Am I a basic ass bitch? Am I GUILTY of being cheugy?”

The proliferation of cheugy in the mainstream discourse can only be attributed to one source: mental terror. It’s an orchestrated psychological trap to make you question your tastes and interests in the eyes of others.

You are not a cheug. YOU’RE PERFECT!!!!

It is very suspicious that the cheugy mascot is a Minion, a literal cyclops, a deformed
yellow panopticon in overalls ... do not let the all-seeing eye to control you. Be vigilant. Resist cheugy psyops.