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There are many different definitions of pwned and where it came from, here is the real one.

It was invented to say "player Owned", it is only used when a human player is killed or lost a game. It was not invented by a WoW player.
Random Guy: "dude did you see that snipe! i pwned that guy in the face!"
Pwned by Scivi May 7, 2009
"Pwned" meas u were overwhelmed by something or someone.

This word originated in Dota (warcraft III "mod")
because in the earliest version of this game, when you kill your enemy you need to take his head and sell it in a PAWN SHOP to get some gold. So it turns that you have just "PAWNED" your enemy. Then the word "PAWNED" became "PWNED" for an easier typeing or maybe just to look more like the other expression that means the same thing: "owned".

That's it.
I pwnedddddddddddddd you n000000000000000bbbbbbbbbbb!
pwned by Narox June 2, 2009
I typo of the word "owned," that every Jonas-fag think means "powerfully owned" and spells with an O instead of a W.
"I just pwned those n00bs"
pwned by Koobface July 30, 2009
"pre-owned" you know you are going to be owned before it happens.
I just got pwned
Pwned by awhitewookie January 18, 2010
The total domination of a thing or person.
The word PWNED originated from the word PWN, which originated from own, then cat.
Hey Liu *punchs* pwned
Best Porn ever?!?!? *rickrolled* pwned
Pwned by burgerrawr March 19, 2010
-noun the total domination or shutdown of a person, place or thing.
P1: Hey Lou!
P@:Hey! *slapz him in the face*

PWNED
Pwned by 2skool4kool May 8, 2011