This particularly vivid bit of imagery is another in the long line of poop-based references on the channel. KidKero was chatting with a straight friend of his outside of the channel but still on IRC. "Naturally," KidKero says, "the topic of buttfucking just HAD to come up, as it always does. [Naturally? always? --ed.] This friend then took great enjoyment in typing salacious faux-sodomizing statements at KidKero. At the end, he smugly made the remark "Ewwww. This is KidKero...when I pull out, it will look like a Payday bar!!" (The name of the candy bar, incidentally, is more properly spelled "PayDay", but more on that later...)
KidKero was absolutely horrified on two levels...first, the visual description will forever be etched onto his brain (as I'm sure as it has on the reader's)...second, while KidKero doesn't claim to be maintain the level of NetBoy (see: poopbypass), he is confident that it most certainly would NOT look like a Payday bar. After the laughter settled, KidKero developed this exclamation as part of some imagined cell phone conversation between some ditzy vapid 19 year old gay boy (see: (to have a) date with a 19yo blond/blue skater) and his best friend after a trick.
The full text of the exclamation is Omigod Billy! It was so gross! I pulled it out and it looked like a Payday! and is generally used as a non-sequitur, preferably when the channel is busiest, in hopes of horrifying as many people as possible. It is also appropriate when the topic of the channel strays towards buttsex, or tragic poopybottom encounters (you people know who you are!), or anything involving chocolate (just say you're helping people with their diets!)
The truly intriguing part of this anecdote is that the PayDay bar, acquired and now produced by Hershey's since 1996, actually has no chocolate in it whatsoever. It's actually a stick of creamy caramel studded with roasted salted peanuts. (Not that you'd want your dick to look like THAT either, upon pulling out...) To make the issue even more confusing, there is a candy bar on the market that does resemble a chocolate-covered PayDay bar -- the Baby Ruth chocolate bar made by Nestlé (since 1990). I suppose Omigod Billy, it looked like a Baby Ruth! just doesn't have the same ring to it.