The Brief: "Shots Fired" is often used an exclamation, following a diss.

Bluesquiggle
DEEP DIVE

When someone blatantly calls out or disses another person, a natural response might be to say, “Shots Fired.” When said IRL, it’s often used as an exclamatory statement like, “Oof, Shots fired!”

It’s sometimes used with hashtag on social media (#shotsfired) and there’s often an implied sarcastic tone.

More often than not, it’s usually the person/group who has been insulted that acknowledges the diss with this statement.