Bufón translates to "jester" or "clown". It's an interesting word because it immediately conjures images of a circus or medieval court, making it quite vivid and memorable.
In the song, LIT killah uses it to describe his reaction to his rivals' downfall: "Me río de tu situación, a carcajada de bufón" (I laugh at your situation, with a jester's laugh). This implies a mocking, triumphant laughter, as if he's an entertainer observing the folly of others, adding a layer of theatricality to his success.
LIT killah's "Bufón" is a super confident anthem about his rise to the top and his dismissal of haters. He's basically saying, "My plan is working perfectly, and no one even saw it coming!"
He's not shy about calling out his critics, telling them, "No mientas que sabemos quién sos" [Don't lie, we know who you are]. He laughs at their situation, literally with a "carcajada de bufón" [jester's laugh], as he goes from show to show. He remembers where he came from, saying he did everything he could "Para estar donde estoy porque a mamá se lo juré" [To be where I am because I swore it to my mom]. He's not interested in their drama, just making money, and he's got zero time for anyone trying to bring him down. It's a blunt, in-your-face declaration of success and independence.