This is a modification of the flag of the Kingdom of Libya (1951-1969), the one that the protesters are using as they get killed in the streets of Libya today.
The current flag of the country is just a green rectangle that was designed by their current leader and murderer. If you want to get deep into the meaning behind this, it is obvious that the red on top is the blood shed by the inhabitants of the country as they ask for freedom and get death instead. The center has the Moon and Star that are the symbol of the Muslim Faith which is the main religion of the country. The green on the bottom is depicted as a torn piece of paper symbolizing the end of the green flag that was covering the Kingdom Flag for so many long years of oppression.
Thanks for reading.
Libya - February 2011