This phrase or expression is used the same way you'd use phrases like "calm your tits"or "calm your shit" to tell someone to not be overly dramatic or go overboard/ overthink shit.
Its two days since an "ex" and i spoke

Ex: So now your not talking to me anymore? why?
I: (laughing) "calm your pussy" i'm talking to you right now aren't i? i've just been busy.
by Kid kong January 11, 2012
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