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Kids yell this when they're about to get stoned. They imagine a shed, walk in, sit down, and get high like they're king of the world. They do it in stupid places like the oval, the park, or even the middle of the road.
'A shed!' I said, and I walked into the imaginary shed in the middle of the oval.
'A shed!' he screamed, then sat down and smoked the joint like it was his last meal.
'A shed!' she said, and we all laughed because it was the oval again.