What does 'SNIPED' status in v$session mean?

When IDLE_TIME is set in the users' profiles or the default profile. This will kill the sessions in the database (status in v$session now becomes SNIPED) and they will eventually disconnect. It does not always clean up the Unix session (LOCAL=NO sessions). At this time all oracle resources are released but the shadow processes remains and OS resources are not released. This shadow process is still counted towards the parameters of init.ora.

This process is killed and entry from v$session is released only when user again tries to do something. Another way of forcing disconnect (if your users come in via SQL*Net) is to put the file sqlnet.ora on every client machine and include the parameter "SQLNET.EXPIRE_TIME" in it to force the close of the SQL*Net session.