"Hot. I've been upgraded to hot." This indicates a surprising change in how the speaker perceives themselves or how others see them. The speaker has received compliments before, calling them cute or adorable, but being called hot is new and exciting. However, it also brings a humorous frustration about being stereotyped or underestimated based on their appearance.

The speaker expresses a playful annoyance about societal expectations, especially as a short girl, and was surprised to learn that short girls can be considered hot. They previously believed they were stuck with a more innocent or childlike image, like an elf or pixie, and appreciated the unexpected compliments challenging those perceptions. The quote reflects themes of self-image, societal labels, and surprise at evolving perceptions of attractiveness.