Example One:
Person: I liek big buttz and i cannut lie
Person2: ^
Thanks for sharing.
Example Two:
Person:
I like to watch the sunset reading a long novel about romance and shit.
Person2: WHO LIKES
ROLLERBLADING IN THE NUDE? I DOOOOOOO!1!!11!one!!
Person2: ^ Ur so hawt
And that's how you use a caret.