Context: The informant is a young professional who graduated from UCLA in 2012. She relays that the acronym for her school had the unofficial meaning of the “University of Cute Little Asians”.
Analysis: A quick search of the UCLA website’s enrollment statistics shows that the ethnic category with the highest enrollment is those who have checked the “Asian/Pacific Islander” box, at 34.8% of total students; the next largest group is white students at 27.8%. The informant herself is not white, nor did she elaborate on whether or not she used the term in her own conversations, but she did confirm that at her time at UCLA, a large portion of the students she saw on a daily basis appeared to be of Asian descent.
The term therefore seems to be a somewhat racist comment on the high population of Asian-descent students at UCLA, combined with the well-worn stereotype that those of East Asian ancestry are shorter in stature than white people, and the fetishization of Asians, particularly Asian women, with the term “cute”.
A somewhat related term I have heard during my time at USC is “University of Spoiled Children”, quite obviously referring to the stereotype of most USC students being rich and white, and a good many of them “legacy” students, meaning an older family member also attended. This view, however distasteful to some, is actually rather true: USC’s student body is 39% white (the next biggest group, 23%, is Asian). And according to an LA Times article, “the percentage of USC students [whose family income is] over $200,000…is more than twice as high as [UCLA]’s”.
I have also heard the much less controversial and more humorous “University of Summer Construction” (but not just summer anymore–I have been a student since the fall of 2010, and there has been some sort of constrution, modification, addition, or repairing going on every single semester along the commonest routes I take across campus).