| Original YTMND:|
FaggotPSA is a fad created by Murdarmachene, based on a scene from the "Stop Hate" PSA (Public Service Announcement) aired on MTV. It featured a montage of kids yelling homophobic remarks at the camera, and then a tribute to Matthew Shepherd, a boy who was murdered for being gay.
The humor in the fad stems from the fact that goofy nature of the montage majorly contrasts with the overall serious message of the PSA. In particular, the fat guy yelling "FAGGOT!" (and inexplicably wearing sunglasses in a dark hallway) produces a hilarious effect, especially when taken out of context.
Fad sites usually feature the fat guy quote edited into other fads or situations (e.g. "I believe you have my FAGGOT!") along with his face pasted on. Some sites feature the other kids from the PSA, with their quotes as well.