I first ran into this sentence (Yes, it’s a sentence) 10 years ago, and found it rattling around in my head recently as I was planning a trip through Buffalo, New York. So now I’ll pass it on and give you the chance to have it invade your head, too.
What the sentence really means is this: “Those buffaloes from Buffalo that are intimidated by buffaloes from Buffalo intimidate other buffaloes from Buffalo (presumably New York, though that is unlikely today).
The understanding lies in the use of the word buffalo as a place, an animal and a verb, and is hinted at by capitalization as well as (in the spoken version) the pacing and pausing and emphasis of the phrasing.
You can read more about it here.