Morale Patches, or simply patches. These are informal patches that became popular during the military campaigns in Iraq and Afghanistan among the American military. Unlike insignia and military chevrons, patches do not carry any official information, but only indicate the owner's sense of humor.
SNAFU is an acronym that is widely used to refer to the sarcastic phrase "Situation normal: all fucked up." This is a well-known example of military slang abbreviations. It is sometimes called "all fouled up" or similar. It means that the situation is bad, but that is the normal state of affairs.