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Whatever helps you sleep at night

A witty comeback that is said after someone makes a ridiculous statement.
Joe: I swear I am not a virgin.

Mike: Bro, whatever helps you sleep at night.

If thats what makes you sleep at night. 

If thats what makes you sleep at night- Commonly used phrase to make peers nearby laugh. But mainly it means what your trying to say is impossible and would never happen.
Kid :"DUDE I CAN DUNK NOW"
Other Kid: "Yeah if thats what makes you sleep at night."
Other kids: "BHAHHAH"

how can you sleep with yourself at night 

something you tell someone when they did something very fucked up
girl #1 : how can you sleep with yourself at night you monster