As someone who grew up in the suburbs of Southern California, It's been my experience that 'like' it's used to introduce a paraphrase that includes non-verbal communication and/or tones that introduce not-so-subtle comments regarding the paraphrase without directly commenting nor limiting yourself with a direct quotation.
For example, I could say "kristianc was like, OMG it is NOT a pause or a tic, it is SoCal dialect!" in a sarcastic tone and roll my eyes.
edit: This form of communication doesn't translate well into digital form - email, texting, etc. - unless both people are familiar with each other's body language and the dialect to visualize (at a conscious or subconscious level) the meaning.