The Rice University Neologisms Database

To curl up and wrinkle like bacon in a pan. The verb '(to) bacon' was created by metaphor from the image of bacon in a pan. After bacon has been cooked, it wrinkles up and creates little hills and valleys in the meat. When shirt collars get stretched out, they look very similar to bacon after it has been cooked, all wrinkled and unable to lie flat, so they have 'baconed'. This term can be used to describe anything that wrinkles up and will not lie flat and has spread or been heard by most people in the United States since everyone in the US either has a TV or has talked to someone who has a TV since it was coined by the makers of Hanes commercial, probably because it is catchy and memorable and much shorter than a long description that would be required by "Standard English", which is important for a thirty second commercial.