To descibe a situation, sombody or something which is so hideously bad it is beyond belief. This phrase is often backed by an arm gesture (a little like limphanded punch) to allow the audience to realise the severity of the horendesness before them.
Person A: "Did you see what 'Laura' was wearing the other day?"
Person B: "Yeah i did it was Fucking Bad" (completed with limp handed punch so that person A realises just how bad the outfit was.
Hay man let get Way Bad Fucked tonight.
Man I got Way Bad last night.
By Heddie
Fuck Dick. My Bad Rich.
When you are so pissed off that you say "Fuck Dick." and just to be safe that you don't offend the people around you, you say my bad rich as an apology to anyone with the name "dick."