Is sometimes used by someone from the LGBTQIA community to show distinction between more than friends and just friends. Occasionally, a person might use this phrase out of fear to avoid revealing true romantic feelings.
Clueless Homo 1: That guy is really hot, but do you think he's a fag?
Knowing Homo: Quite queerly -- have you not noticed all the penises he's constantly jamming in his butt?
Clueless: I guess you're right.