I saw this entry in Urban Dictionary (I know, not the best place for formal English, but it does do a pretty good job at collecting slang).
short for "hang out"
"I'm just gonna hang at Lolita's place today"
My question is, do people really use "hang" for "hang out"? i.e. do people really say "Let's hang some time". I have never heard of people saying it, and it sounds awful to me. It sounds like you want to hang yourself.