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Much like it's harsher, more severe brothers owned and pwned, lwned means to be dominated or defeated in some way by another, but perhaps just a smaller victory.
While Owning something is completely, Lwning (Loaning) something is temporary.

"GOD DAMMIT THIS GAME SUCKS"
"NO U DO!! AHAHAHA!! LWNED!!"
by Gregory September 17, 2003
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