Burlao' is a Puerto Rican slang term derived from "burlado," which literally means "mocked" or "ridiculed." However, in the context of this song and modern urban Spanish, it's used to mean "flexing" or "showing off."
Eladio Carrión repeatedly uses "estamos burlao'" to convey that he and his crew are successful, living lavishly, and essentially "flexing" on their competition and haters. It's a vibrant and common slang term in reggaeton and trap music, making it an interesting word to learn for understanding contemporary Spanish music.
Eladio answers Bad Bunny’s song of the same name by taking the title and refusing to hand it back. The whole first verse is one long rhyme on English words dropped into Spanish sentences: Gallery, calories, factory, allergy, Blackberry, delivery. He keeps going until it gets silly, and that is the joke. “El cartero daba la asistencia perfect con el delivery, Ribéry” (the mailman gave the perfect assist with the delivery, Ribéry) piles a postman, a basketball assist and a French winger into eleven words, and then he tops it with “Todo lo que sale de mi boca es fresco como si vomité Listerine” (everything that comes out of my mouth is fresh like I threw up Listerine).
The hook is one Puerto Rican word doing all the work. “Estamos burlao’, estamos burlao’, estamos burlao’” (we’re killing it, we’re killing it, we’re killing it) is burlado worn down to burlao’, and it means winning so comfortably you can afford to laugh at everyone. What makes the song better than a flex is the last verse, where he stops bragging and starts counting: “Gracias a Dios que llegamos a los 30” (thank God we made it to thirty), “Mami no me va a ver en la caja” (Mom isn’t going to see me in a coffin), “Yo corté un par de panas” (I cut off a couple of friends). The bill for the Casa de Campo weekends turns out to be a list of people he no longer speaks to.