An evolution of powned or pwned (1) (which in turn derives from owned). It also has connotations of poon as in poon tang (3) to mean pussy, famously used in South Park. Pooned (4) Also has connotations of harpooned and is pronounced the same way.
Also used in to mean to nail something (get it right) or someone (get laid)
(1) "You got powned/pwned"
(2) "You got owned"
(3) "I'm gonna get me some God damn poon tang"
(4) "Oooh you got pooned"
(5) "You see that whale over there with harpoon scars? That's right... last night.... she got POONED!"
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