The term's origin is actually presented at the beginning of the vid. It's from the 70's sitcom Happy Days, specifically the episode where Henry Winkler's character 'The Fonz' does a water-ski jump over a shark. It was considered to be the point where the character's macho passed from the sublime into the ridiculous--a marker that the peak had been reached and it was all downhill from there. Here's the Urban Dictionary (urbandictionary.com) on the topic.
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