Pwned means to completely dominate the opposition, or impose a humiliating defeat on the enemy. This term is used mostly in online games.
Pwned originates from a game of Counter-Strike, around
Christmas day in 2002, in which a player was eating while playing at a party, and faced off against the last remaining enemy by himself. After winning, he typed with one-hand the word "owned", which ended as a
mistype, with the "p" replacing the letter "o" (P and O are next to each other on the QWERTY keyboard). Instead of correcting the mistake, other players started using it, which soon spread to popular games, like Starcraft I and
Warcraft III.