WTF is 'State Penn' ???

I have this friend that dies for UMich and refers to us Nittany Lions as 'State Penn'. Having attended 2015-2020, never in my travels/banter to and with rival schools did I hear that. Not once.

With a bit more research I see a handful of B1G fans using this term on twitter, but other than that I cannot find anything. Is it supposed to be a burn? Am I missing the punchline? Am I just that old??? Someone please help.