The first is called the "shaka" sign. The earliest instance of the word "shaka" was recorded in 1928 and was originally a slang word in Hawaii meaning "cool, awesome, rad" etc. The hand gesture was popularized in the 1950s by radio personality Lippy Espinda, which happened at the same time the slang word "shaka" experienced a resurgence. Legend has it that it invented by a Chinese sugar mill laborer in one of the plantations. He had a horrible accident in the machine that crushes the cane stalks and he lost three of his fingers on his left hand (leaving only his pinkie and his thumb). But he had a wonderful, warm-hearted personality, and he loved to wave to people he met, shaking his hand that lacked three of his fingers. And, as the legend goes, that's where the "Hang Loose" shaka sign came from.