Yes, this is a picture of Chelsea Clinton posing with a bunch of men (possibly gay? Definitely not professional) in drag. They were out celebrating Portland, Oregon's "Red Dress Party," which is an LGBT fund-raiser described thusly:

"Not to be confused with that other annual "Red Dress" fundraiser, this is the "Red Dress Party," a mondo-alcohol-fueled dance party where nearly 2,000 gay men in various states of red dress undress (and several nearly naked straight men as well as one very colorfully decorated naked woman) invade a warehouse in Northeast Portland and dance their collective asses off to pounding disco music and the incredible Storm Large and her Balls (they were beyond fabulous)."

Um, Chelsea Clinton was in a room with "Storm Large and her Balls"? That may actually be the definition of the term "hot tranny mess."

Red Dress Party Photo Gallery [JustOut via Towleroad]