As this phrase does appear in our Gemaras, almost all of the Rishonim assume it to be true. The acronym stands for: (this explanation appears in Rashi to Bava Metzia 22b
( בבא מציעה פרק ב דף כב,ב ) and Kidushin 52a ( קידושין פרק ב דף נב,א ), where Tosfos argues there)
The actual phrase is:
תיובתא דרבא תיובתא והלכתא כוותיה דאביי ביע"ל קג"ם
[This is] a complete refutation of Rava. And the law is in accordance with Abaye in [the cases indicated by the initials] Y'AL KGM.
יאוש שלא מדעת - הלכה כאביי שלא הוי יאוש
"Yeush shelo midaas" - if a person loses something without realizing it, but once they do realize it, will give up looking for it and deem it owner-less, than a person who finds it can keep it (Bava Metzia 21b)
עד זומם - הלכה כאביי שנפסל למפרע
"Ed Zomem Nifasl Lemafrea" - if two witnesses are deemed Eidim Zomemim (conspiring witnesses), then even their testimony that they've given in the past in nullified. (Sanhedrin 27a and Bava Kamma 74b)
According to Rashi, the ל stands for
לחי העומד מאליו - הלכה כאביי שהוי לחי
"Lechi Ha'omeid Me'eilav" - if a stick is standing by itself, it can still count as a stick for purposes of dividing a mavoy from a public domain (Eiruvin 15a)
According to Rabbeinu Tam, ל stands for
לידה - הלכה כאביי שאינה ימי זיבה
Leida - birth; the law is like Abaye in that a woman who gives birth during the days of zivah doesn't interrupt her count and can count clean days within the post-birth pure period
קידושין שלא נמסרו לביאה - הלכה כאביי שהוו קידושין
"Kidushin Shelo Nimseru Le'biah" - if a man attempts to marry a woman, but his act of marriage cannot lead to permissible intimacy (i.e. he attempted to marry a woman and her sister), then it still counts as kiddushin (i.e. requires a divorce) (Kiddushin 52b)
גילוי דעת בגיטין - הלכה כאביי שלא הוי מילתא
"Giluy Daas" for divorce - if a man can reveal that he wanted a stipulation regarding a divorce document that he had already sent to a messenger to give to his wife (Gittin 34a)
מומר אוכל נבילות להכעיס - הלכה כאביי שפסול ולא צריך דווקא פסול ד"חמס"
"Mumar Ochel Neveilos" - a rebel who eats forbidden foods with the intent to anger God is not acceptable as a court witness (Sanhedrin 27a)