>>1267613It's originally a german thing, back from when going /out could land you in prison (or later, in the KZ).
The Background is that our equivalent to the boyscouts, the Bündische Jugend, used to be made up of a bunch of paramilitaries, rebellious teens and some radical communists, nationalists and democrats.
they were almost completely illegal from 1819 (when a member of a Studentenbund murdered a russian diploomat and all Bünde where forbidden) up until the 1970s (when "Landstreicherei", aka hiking without sleeping in houses ceased to be illegal). The only time they were completely legal was during WW1, when a whole battailon (officers and all) was formed by BJ and Wandervogel groups. Since they already had paramilitary taining and a command structure, they were more effective than the usual volunteers.
During the worst persecution (~1819-1848 and 1920-1945), it was common to only use nicknames, the so-called "Fahrtenname" so the police and Hitlerjugend wouldn't be able to indentify others even if one was caught and tortured.
Since many BJ members emigrated to the US, I guess that's how the custom got imported there.
Afterwards, modern posers adopted the idea and forgot about the backgrounds.
One of the major traditions is that the nicknames are always insulting. For example, my great-grandfather used to be called "Wasserratte" (waterrat) since he had black hair and liked swimming. One guy I know is called Potter since he has lots of body hair and doesn't shave (at all) -> was called hairy potter -> got his name shortened. I (a stout, bearded man who's never danced in his life) am Ballerina BTW. Don't ask why.
On the other hand, if somebody has a name that isn't derogatory, he's either a member of a poser scout group or made it up himself.