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I don't know if slang is the best representation of culture. I went to 4 of the 5 boroughs in NYC (sorry, I'm never going to Queens), and most people didn't use that term. Anecdotal evidence, I suppose. Usually, people let their burns stand by themselves.

From Urban Dictionary:

Burn:

"To be thoroughly humiliated or insulted to the point where you cannot return with a comeback."

So if it's also a synonym for "just kidding," than people in NYC must be out of the loop (no offense!).

And I think we're destined to do this forever.