orange goo

"Your buddy here was about to be turned into orange goo. He picked a fight with a Dug, an especially dangerous Dug called Sebulba…"

I think Anakin meant that Jar Jar would have been ripped apart by the Dug.

He saw JarJar for the first time, his skin color is Orange and White. Sebulba was about to beat him up, with goo, he meant likely, that Sebulba is such a bad guy, he would beat him up until he is just goo/completly beaten up.