Diaper Smoke

So, Sunday afternoon Carlee and I are sitting on the floor in the living room when Carlee starts jumping up and down squeeling...here's the conversation that followed:

Carlee: Mommyyyyy, there's smoke in my diaper, there's smoke in my diaper.
Me: There's WHAT in your diaper?
Carlee: There's SMOKE in my diaper. I need loshee, I need loshee (lotion - which is what she calls diaper rash cream)

So, we go in her bedroom, and she lays on the bed to get her diaper changed.

Me: Is there poop in your diaper?
Carlee: No, there's SMOKE in my diaper. I don't want to get smoke on my big girl bed.

I change her diaper...nothing. The only thing I can think of is that she equates smoke with burning???

Later that night, I was sitting in the chair and our conversation continued:
Carlee: Jenna smokes in her diaper.
Me: Really?
Carlee: Yes.
Me: How did you get smoke in your diaper?
Carlee: (In her serious tone) I tooted.

Hummm...