Best definition
A compressed version of “laugh out loud but serious”.
It can be used to acknowledge an amusing element and then assert

a level of importance and earnestness regarding the subject of discussion.
In other words, it is the equivalent of “I find that amusing however my question or statement was genuine”.

Jed: “How hard is it to pass that maths exam?”

Nick: “I’m hard right now.”

Jed: “lolbutsrs.”

Nick: “Oh. Er… Yeah it’s alright I guess…”

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