Shaquille O'Neal was way out of line when he took an Instagram potshot at an innocent guy's face -- but he's still gonna get away without paying the guy a cent ... according to a Michigan judge.
According to legal docs obtained by TMZ Sports ... the lawsuit filed last summer by Jahmel Binion just got dismissed because of a jurisdictional technicality.
We broke the story ... Binion sued Shaq and rapper Waka Flocka Flame for defamation after they posted his pic with captions making fun of his face. Binion has a disorder that causes facial deformities and limited hair growth.
Based on the docs, it's clear the judge thinks Shaq was a jerk for doing this. He calls Shaq's comments, "highly offensive." The problem for Binion is he filed the suit in Michigan federal court and since Shaq has no residence or business dealings in Michigan ... he can't be dragged to court there.
There is a silver lining for Binion. Waka never responded to the lawsuit -- so, according to the docs ... he might lose by default.