[tshaddox]

It took me a second to correctly analyze the sentiment of “hot shit.” I realized it means “really good,” as opposed to, for example, “steaming pile of shit” which means the opposite.

[fration]

It also generally has the connotation of someone having an inflated opinion of themselves.

[ChicagoBoy11]

You'll enjoy this exploration on this precise topic:

https://www.youtube.com/watch?v=ifNEgwGACEQ

[samuli]

Here's a link to the original video from the actual standup comedian in the video

https://www.youtube.com/watch?v=igh9iO5BxBo

[robocat]

The expression “shit hot” is a superlatively good thing. I don’t ever recall hearing “hot shit”, although perhaps it is a US term or a modern usage. Urban dictionary defines both.

[lamontcg]

"Hot shit" is a US term, and it is old and was around in the 80s at least.

[reaperducer]

Longer than that. I saw it in a book from the 1950's.

I expect it's a variation of "hot stuff" which I've heard in songs from the 1930's.