From Wikipedia
Hoosier is the official demonym for a resident of the U.S. state of Indiana. The origin of the term remains a matter of debate within the state,[1] but "Hoosier" was in general use by the 1840s,[2] having been popularized by Richmond resident John Finley's 1833[2] poem "The Hoosier's Nest". Anyone born in Indiana or a resident at the time is considered to be a Hoosier.[3] Indiana adopted the nickname "The Hoosier State" more than 150 years ago.[1]
Humorous folk etymologies for the term "hoosier" have a long history, as recounted by Dunn in The Word Hoosier.
One account traces the word to the necessary caution of approaching houses on the frontier. In order to avoid being shot, a traveler would call out from afar to let themselves be known. The inhabitants of the cabin would then reply "Who's here?" which – in the Appalachian English of the early settlers – slurred into "Who'sh 'ere?" and thence into "Hoosier?" A variant of this account had the Indiana pioneers calling out "Who'sh 'ere?" as a general greeting and warning when hearing someone in the bushes and tall grass, to avoid shooting a relative or friend in error.[11]
The poet James Whitcomb Riley facetiously suggested that the fierce brawling that took place in Indiana involved enough biting that the expression "Whose ear?" became notable. This arose from or inspired the story of two 19th-century French immigrants brawling in a tavern in the foothills of southern Indiana. One was cut and a third Frenchman walked in to see an ear on the dirt floor of the tavern, prompting him to slur out "Whosh ear?"[12]