I used to have a math prof named Dr Sakit Toome...
Pronounced "Socket Tomb-ee". I kid you not.
I'm not familiar with the particular interpretation to the phrase you point out, but that doesn't necessarily mean it wasn't true, or was used that way in some other region of the country. We were familiar with the phrase, but never used it, sort of like "Groooooovy". No one EVER said "Groovy". In fact, most of the "hippie slang" of the time was inherited from the Beat Era which preceded it, and has survived to this day and has become part of the language.
And of course, no one ever said "hippy". We always called ourselves "freaks", and those who weren't freaks weren't "square", (something else no one ever said), they were "straight".