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Originally posted this on a Grim Dawn forum, but it applies here too:

One thing I've noticed about the WYSIWYG loot drop system in TQ and GD is that if an enemy drops armor, the drop animation sometimes makes it seem as if you hit them so hard that you knocked them clean out of their armor. I'm not sure if they considered how it looked when making those animations, but it can be amusing.
Hence the saying.. "knocked the socks out of them".. :)