A reflexive physical manifestation of the base emotional reaction that occurs when one encounters something they find decidedly offensive and/or insulting at either an instinctual or intellectual level.
The feeling you get when something is so incredibly embarassing and/or retarded, you have to avoid making contact or avert your attention with it or else taking the risk of feeling like a total loser-douche.
From some shitty teen movie, popularized by the latenight Washington Area radio show "The Hideout Featuring El Jefe and J Dubs"
Guy 1: Who's that?
Guy 2: Oh, that's just the resident douchebag.
Guy 1: You mean douchecarrot?
Douchecarrot: Bitch, I get so much pussy you have a small dick!
Guy 1: Yeah, I'm pretty sure girls masturbate with you all the time, Mr. Carrot.
Said by Dr. Tobias Funke in "Arrested Development", it implies a situation that is very awkward and uncomfortable for all parties. Also means someone who sucks at life, therefore making everyone around them uncomfortable.