1.
A mix of the words Lolita (usually a girl between the ages 8-16) and shonen (meaning boy). It usually means a boy who look far younger then they are and often act in such a manner.
He said he wouldn't date a girl two years older then him, but duh he's not a loli-shota.
See lolita, shonen, high, school, host, club, hunny
2.
Loli-shota is referring to the words lolita (which is the cutesy clothing style in which girls dress in clothes that make them appear like little girls) and shota (which is the term often used in fanfictionto indicate the inclusion of young, pre- and early pubescent boys in sexual acts, usually with much older adult men.) The terms, when used in conjunction, often represent a young boy who is overly effeminate, or "cutesy".
"That character Honey from Ouran Host Club is totally loli-shota."
See cutesy, lolita, shota, fanfiction, effeminate