ONE SHOULD NOT USE ALL CAPITAL LETTERS BECAUSE IT IS RUDE AND UNACCEPTABLE BEHAVIOR WHEN COMMUNICATING ON THE INTERNET. This answer should provide enough irony to supply the nation of Japan with enough raw materials to keep building cars for the next 100 years.
It means that in the situation, there is irony. Ex. You were talking about your favorite singer, and then later you here that singer on Pandora. While listening to that song, you'd say that's the irony of the situation
Irony of situation is a situation in which there is an incongruity between appearance and reality, or between expectation and fulfillment that goes beyond the simple and evident intention of words or actions. Read more on http://en.wikipedia.org/wiki/Irony.