A humorous
mispelling of "LOL" - usually used as a
parody of
internet Forum users who can't type properly and/or make no sense.
In this respect it is similar to "teh", a humorous mispelling of "the" used for similar purposes.
"hey did u hear the PS3 is goingto cost $
700? Im not paying that lol"
"
SONY IS TEH DOOMED
OLOL!!1"