Literally translates to "I am laughing because I just now remembered that butts exist," but meaning depends on usage- can be an
insult, a compliment, an observation or a
question.
Frank: "Hey, I just joined a frat."
Paul: "lol butts"
Shawna: "Do you
like my new haircut?"
Paul: "lol butts"
Paul: "lol butts"
Steve: "I agree."
Paul: "lol butts"
Steve: "No, we lost it a few weeks ago."