Refers to the enormous sideways "expanding" of the "honesty line" (i.e., the "straight 'n' narrow" ink-trace that is drawn when the subject is not lying) that occurs whenever Hap Shaughnessy takes a polygraph test while reciting one of his grandiose tales of phenomenal past accomplishments/escapades.
When his fellow villagers disgustedly waved off his amazing tales of howling adventures and intrigue during his trip as an ambassador, Will Rogers indignantly snorted that he hoped that a building would fall in on him if he'd "padded the facts" at all about his recent political adventures, and a huge brick chimney immediately did collapse and shower him with bricks and powdery mortar-dust (he wasn't hurt -- no worries). Kind of a crude and "extreme" polygraph-device, but it did indeed show that Will had evidently been stretching the truth somewhat.
12 step recovery jargon referring to someone new who talks about how great life is, now that they'resober. Usually meaning that the person is out of touch with reality.
The new guy seems pretty happy for a dude who has no job, no money and no family. He must be on a pink cloud.