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Actually misspelled. Boobie hatch is an ancient term for small hatch covers intended to keep a species of seabird called a Boobie from entering a ship through portholes and other smaller ventilation opening. The usage to mean insane asylum is probably related to events happening when things enter through a boobie hatch. Either its drunken sailor activity (urination, etc) or a very messy situation involving an excited seabird thrashing around madly in a confined space with a bunch of sailors.
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