1. In a World Of Warcraft game:

God crits Orly for 900,000 damage.
Orly dies.

Orly's Friend: "WOWNED!!!"

2. It can also be used in real life. For instance:

Orly and Lol are walking down the street.
Orly slips on a banana peel.
Cements crits Orly for 250 damage.
Orly dies.
Lol: "Wowned"