I'd never heard the term at all before....but then again, we don't have a very 'greek' campus.
I don't think it'd be that offensive...although it took me till third year to go greek and I'd probably object if it had been used this way
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Never to be like.. ugh so there was this GDI at the party and OMG she was such a .... etc etc etc.
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But I don't seem much harm in joking with friends....