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Usualy used in online games when you completely destroy someone with no hope of them doing any damage back.
Usualy when someone experianced beats someone much less experianced hands down. Or (for example in eve-online) a fleet of ships takes on one person who clearly has no hope of winning against them. IE they will be/have been Pewned.
Pewned by Matt_t September 13, 2008
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A corruption of the word "Owned." This originated in an online game called Warcraft, where a map designer misspelled "owned." When the computer beat a player, it was supposed to say, so-and-so "has been owned."

Instead, it said, so-and-so "has been pwned."

It basically means "to own" or to be dominated by an opponent or situation, especially by some god-like or computer-like force.
"Man, I rock at my job, but I still got a bad evaluation. I was pwned."

OR

"That team totally pwned us."
pwned by Daniel Rivera April 11, 2003

pistol pwned 

1. When you play an FPS and you, with your pistol, dominate an opponent who has a much more powerful weapon.

2. Bashing to death a player with your pistol.
<Player 1> (pistol kills) <Player 2>
<player 1>: Oh snap! Pistol pwned you!
pistol pwned by mchesney August 29, 2006

omega pwned 

when the pwnage has reached such an extent that one cannot be pwned any more. the ultimate and final pwn.
guy 1: did you see joe?

guy 2: no, why?

guy 1: well, he went in to get his appendix removed and they got him confused with the transexual. now his outie is an in.

guy 2: omega pwned.
omega pwned by holly molly August 19, 2006