The use of the word references the fact The one who was pawned was so utterly humiliated by the pawner that the pawned belongs to the pawner from now on. The Pawner however, esteems them of no worth and instead chooses to sell them off. Thus the defeated has been "pwn'ed"
How did the test go? I was Pawned
2) Next-to-useless chess piece.
3) to trade in one's belongings for cash, hoping to buy them back when in better financial shape (or if unwanted, not at all).
All eight of my pawns are gone and all they did was take a rook
I pawned in your son to buy a gat.