I don't know that term, however I intuit its meaning from the similar expression "hot potato". A "hot potato" is a potato that is, well, hot, so if you throw it to someone and they catch it, it is too hot for them to hold so they quickly throw it to someone else, and so forth.
The term is not applied to actual potatoes but rather to projects, problems, or difficult situations that people do not want to hold for long.