'lmfao' Abbreviated form of "Laughing my fucking arse (or ass or other) off" commonly used in online/networked gaming and in chat rooms, similar to, though more expressive and indicating greater laughment than lmao (laughing my arse (etc.) off).
Absolute pwnage!! lmfao that n00b
lmfao at that pwn
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Just googling "lmfao meaning" gives you countless results explaining the acronym.
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