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PAL is when you point at someone and laugh like they just tripped in a soup bowl. It happens when someone does something so stupid or embarrassing, it makes your guts hurt from laughing.
I saw my buddy eat a whole pizza in one bite and then burp out a piece of pepperoni. Classic PAL moment.
My teacher walked into class wearing pajamas and a hat. The whole class did a PAL on her.
My dog tried to chew my homework and left a mess. I did a PAL on him and then fed him a treat.