When a cottage cheese type substance begins to ooze/drain from the female vaginal cavity fusulting in an offensive type manner to both the visual and olfactory senses.
I thought that the tramp that I brought home from the club was Grade A prime ass, but once she pulled of her skidmarked drawers I saw that she had pussy shit leaking from her gaping, sultry, moldy, gash.
Used as an exclamation, particularly used by a third party to either emphasize some shit goin' down, or to make an awkward situation even more inappropriate.
This is not to be confused with other uses of the word "pussyshit" used as a noun.
Person 1: Shit Bromethius, we just sank it into triple overtime.
Bromethius: AWWW Pussyshit!
Person A: You wanna fucking go, dickshit?
Person B: I'm gonna rape your family!
Person C: AWWW Pussyshit!