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It's German slang for a total fag, queer, or some other gay mess. You know you're one if you're too chicken to stand up to a real man.
"You're a madchen? I could beat you up with one hand!" - My cousin at a family BBQ
"I'm not a madchen, I'm just confused." - My brother after I called him one
"You're a madchen and you're gonna pay for this." - My friend after I mocked him in front of everyone