The term "Magic Pill" originates from the movie "Nezha: Birth of the Demon Child." In the movie, the spiritual energy of heaven and earth gives birth to the Hunyuan Pearl, which is refined by the Primordial Heavenly Venerable and divided into the Spirit Pearl and the Magic Pill. The Spirit Pearl is reincarnated as a kind-hearted little boy, Ao Bing, while the Magic Pill is reincarnated as the mischievous little demon child, Nezha. The Magic Pill possesses immense destructive power and is destined to be destroyed by heavenly thunder three years later.

Later, this meme became popular online and has the following meanings:

Describing a mischievous yet pure-hearted child: It is often used to describe those who appear to be naughty and unconventional, but are pure-hearted and full of potential. They may seem troublesome on the surface, but in reality, they are smart, clever, and full of creativity, and they can even surprise people greatly at crucial moments.
Expressing a teasing or self-deprecating attitude: for example, phrases like "I was born with a magic pill" were originally a tease by netizens about the setting of Nezha's "reincarnation of a demon child". It later evolved into a form of self-mockery or a way to ridicule others, often implying "I am naturally naughty, but I also have my unique qualities."
Deriving some quirky usages of memes: such as the meme "everyone smash the magic pill n times," which uses an imperative tone to mock and tease, allowing netizens to express their attitude towards the "magic pill" in an exaggerated manner. It is usually a nonsensical humorous expression, not genuinely asking people to smash their own magic pills.