It is the opposite to "hit the nail on the head"; it can be used in reply to PC nonsense which leaves one flabbergasted.
Can best be used in response to anti-zionists, anti-semites and various apologists for Islamofascism, when they make ludicrous assertions that are so nonsensical that you can't be bothered to reply in detail.
It can be used to expose perverse reasoning especially in response to leftist/Islamist/anti-zionist crap.
For example, for those who believe that it is racist to post a blog about, the Saudi who hit nails into his maid, you can immediately reply " Yes. You've hit the nail on the maid's head".