When a computer or piece of electric equipment is broken by the user messing with the insides.

'He let the blue smoke out of the imac'
by billy.fish October 29, 2007
when smoking weed, there is little or no smoke, causing it to look a little blue and the weed is ash
"Aw dude, ash that shit out, I just got blue smoke"

"Dude, ew, that was blue smoke"
by envy89 August 18, 2008