The story
Unknown. Compare lollypaloozer and lallapalootza, which are attested earlier with similar meaning. Compare also 19th century slang la-la something unusually good.
Etymology from Wiktionary, CC BY-SA 4.0.
lollapalooza
lol·la·pa·loo·zaToday it means: An outstanding, extreme, or outrageous example of its kind. Full definition →