Jeff Beacher vs. Shorty Rossi -- Little Man Lawsuit ... SETTLED!!!

That was fast ... Jeff Beacher's lawsuit against "Pit Boss" Shorty Rossi is SETTLED ... thanks to TMZ.

As we reported, Beacher just sued Rossi -- who used to work at Beacher's Madhouse -- claiming Rossi essentially stole valuable Beacher-themed website domain names after the two parted ways ... domain names like jeffbeacher.com and beachersmadhouse.net.

Rossi called in to "TMZ Live" today and said even if he won the lawsuit, he had no interest in squeezing Beacher for money in return for the domain names.

So we asked Rossi ... if Beacher apologized to him, would he drop the suit and fork over the domain names? Rossi said he would.

So then we called Beacher, and he played ball, saying, "Since we are both little people impresarios, it does us both no good to fight over anything, and only hurts the community of little people that we live in. Shorty, I apologize for suing you. Let's just work this out and move forward as friends again."

Shorty tells us he accepts Beacher's apology and will transfer the domains ASAP. He added, "After reading the apology, I had to pick myself off the floor. Apparently hippos do fly."

Now give us something hard ... maybe North Korea?