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'swagging it out' is the action of recovering from an awkward/[embarrassing] situation with style. Like when you are going to pass someone in the corridor and you both go to go the same way and you end up dancing like a retard with them so you actually start to do a real dance as if you meant to in the first place. Or when you fall over by accident but then 'swag it out' by doing a commando roll [on the floor], swiftly rising back up and walking off feeling epic. Usually 'swagging it out' will result in people [laughing at you] and thinking you are a complete faggot for not accepting your fail. Some people however, think that 'swagging it out' is really awesome as you are denying the world of your fail, you will not abide by the system and accept your fail, you will own the day and control your future.
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