The story
From palimpsest + -ous by surface analysis, but also a humorous blend of palimpsest (“a text with several layers”) + incestuous (“involving relationships between related things”). Coined by Anthony Burgess (as palimpcestuous, with a suggested alternative form palincestuous to make the connection with incestuous clearer) to describe self-reference and the use of wordplay in the works of James Joyce.
Etymology from Wiktionary, CC BY-SA 4.0.