Going out on a limb here, but the exhibited expression looks like a brave but flawed attempt to implement the Y-combinator extremely concisely.
The Y-combinator is a technical trick used to implement recursion in the lambda calculus. Here is an implementation that stoops to using some symbols:
Y[f_] := #[#]&[Function[n, f[#[#]][n]]&]
... and here is an example of its use to calculate factorials recursively:
fac[r_] := If[# < 2, 1, # * r[# - 1]]&
Y[fac][10]
3628800
Of course, in Mathematica there is no need to engage in such gymnastics since explicit recursion is supported directly. But it is a nice brain-teaser: can Y be expressed using no symbols? (Ideally using nothing other than special input form #, the postfix operator &, the matchfix operator [...] and parentheses -- just like the original expression.)
The Obscurity Continues
Since we are exploring obscure corners of Mathematica function syntax, here is another version of the Y-combinator that uses the rarely seen \[Function] syntax, ESCfnESC:
Y = f ↦ (g ↦ g[g])[h ↦ n ↦ f[h[h]][n]]
(* but copy this instead to get the correct Mathematica character:
ClearAll[Y]
Y = f \[Function] (g \[Function] g[g])[h \[Function] n \[Function] f[h[h]][n]]
*)
Function[]form is more enlightening:Function[f, f[f]][Function[f, f[f][f]]]. Or, in another form:Function[f, f[f]] @ Function[f, f[f][f]]. – 0x4A4D♦ Feb 9 '12 at 3:46$RecursionLimit::reclim: Recursion depth of 256 exceeded.- This snippet is nonsense. – David Feb 9 '12 at 3:55