"According to the Honolulu Star-Bulletin, prevailing local lore credits the gesture to Hamana Kalili of Laie, who lost the three middle fingers of his right hand while working at the Kahuku Sugar Mill. Kalili was then shifted to guarding the sugar train, and his all-clear wave of thumb and pinkie is said to have evolved into the shaka as children imitated the gesture."
"Since 2015, fans of the Mormon-sponsored Brigham Young University (also known colloquially as "The Y") have started using the gesture, in deference to newly hired Kalani Sitake, BYU's Polynesian head football coach, and because of its similarity with the letter Y in the American manual alphabet that is used with American Sign Language.
Perhaps most importantly there, it is used as a nod of respect to Hamana Kalili, a native Hawaiian Mormon who according to locals is the founder of the popular sign."
WikipediaThe shaka sign, sometimes known as "hang loose," is a gesture of friendly intent often associated with Hawaii and surf culture. It consists of extending the thumb and smallest finger while holding the three middle fingers curled, and gesturing in salutation while presenting the front or back of the hand; the hand may be rotated back and forth for emphasis. While the shaka sign has spread internationally from its Hawaiian cultural roots to surf culture and beyond, the hand gesture also bears a variety of meaning in different contexts and regions of the world.
https://en.wikipedia.org/wiki/Shaka_sign