When you and yo bitch are fuckin and you whip out a fried chicken drumstick and shove it up her ass and pound her ass with it, then pull it out, shout "MMM CHICKEN!" and take a big bite out of it.
Guy: I feel like a dirty chicken dinner.
Girl: Ok baby the KFC is in the kitchen.
Guy: MMM CHICKEN!
<chomp>
It is said of the situation where a person has the bad luck to make contact with his testicles against an undefined surface or object, intentioned or not.
Given the nature of the word, it is more appropriate to design cases where the interaction is made with a moving object, for example, a ball.
Although it is extremely painful for the victim, it tends to be considerably funny to people who witness it.
Today in the baseball game the pitcher took a nutshot; the baseball hit him in the nuts.
Man, I just watched the funniest nutshot video ever.