The “LQ” in this rhyme is famed Latin Quarter nightclub in NYC. From 1985-89, the club was a hip-hop Mecca, referenced in song by Boogie Down Productions, Ice-T, and others. See Schoolly D perform at the LQ in 1986 here
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One should equip oneself here with both knowledge and firearms, or else face the consequences
Indo, or marijuana, gets put into baggies to be sold and is then smoked. People who cross Crooked get smoked (shot) and then put into a bodybag
The lines call to mind (surely intentionally) this famous picture of Malcolm X:
This is not the first time Crooked has compared the amount of guns (“firearms”) he has to the number of actual arms possessed by a lot of animals
In this particular metaphor there is also a play on the word ‘bear’, because the animal (Koala) used here is wrongfully considered by many people as a ‘bear’ (it’s a marsupial, not bear).
C.O.B. is the name of Crooked’s label/crew/etc. It stands for “Circle of Bosses”, though he often claims it also stands for “Crip or Blood”, “Cash Over Bitches”, and “Conducting Organized Business”
Burners are “throw-away guns”, meant to be used only once, in the same way “burner” cellphones are
An octopus has a lot of arms, and if a bunch of them were burning, many “arms” would be on “fire”. Of course, the kind of firearms Crooked is holding have nothing to do with sea life
The word “octopi”, incidentally, is generally regarded as a hypercorrection — “octopuses” is the preferred plural
A “stash box” is a secret compartment, often in a car, that is used to hide weapons or weed
Another homophone! “Piece” in the second instance here means “gun”