The ":^o" emote is typically used to convey a sense of sarcasm or disbelief, often in response to something that seems unlikely or untrue. It can also be interpreted as a mocking expression. The "Liar Liar" emote is a variation of the ":^o" emote, featuring a nose that grows like Pinocchio's when he tells a lie. It is often used to call out someone for being dishonest or to express skepticism about what they are saying.