a lituation is a lit situation. Something can be a "lituation" if it's lit, and if it's a situation.

It’s a culmination of several lit things happening at once.

when it is lit as fuck.

A rapid amout of visitors in an enclosed setting featuring loud vibrant music. It features guest dancing and simply having a good time expressing postive vibes, simply enjoying themselves.

a situation that is lit; a lit situation

When the situation is lit.

A lituation would describe a "lit situation." This could also be used for any fun hangout with friends.