It’s not about either of those things, it’s about disrespectful men aka “the dogs” who come and harass the women and mess up the party. The chorus is about a woman who says, “Who let the dogs out??” meaning, “Who let these jerks in here?” basically. Excerpt from an interview at Rock Cellar Magazine, with the songwriter, Anslem Douglas (source)
“RCM: What do the lyrics mean?
AD: It’s a man-bashing song. I’ll tell you why. The lyric of the song says, “The party was nice, the party was pumpin.’” When I said the word “party” I was being metaphorical. It really means things were going great. The “Yippie-Yi-Yo,” that’s everybody’s happy, right? “And everybody was having a ball.” Life was going great.
“Until the men start the name-callin’ / And then the girls respond to the call.” So the men started calling the women “skank” and “skettel,” every dirty word you can think of. The men started the name-calling and then the girls respond to the call. And then a woman shouts out, “Who let the dogs out?” And we start calling men dogs. It was really a man-bashing song.”