The joke works because it twists the well-known that's what she said punchline, replacing she with Lich, a name familiar from fantasy games and tabletop lore. That swap gives the line a nerdy, in-joke edge that fits gaming clips, streams and meme edits, where viewers already expect a quick innuendo gag after an awkward line. Because the clip is only a few seconds long and instantly recognisable as a punchline, creators keep reusing it as a low-effort reaction rather than a centrepiece, letting the wordplay do the work.