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An abbreviation of a typo. Originally "Owned" which became "pwned" when some n00b with questionable typing skills wrote this linguistic abortion into their chat console. The term is an abbreviation of the newly-created word.

The term refers to figuratively getting your ass beat in by a forty-something year-old prison inmate, i.e. getting your shit kicked; getting your ass whooped; getting knocked out; you lose bitch.
"OmGlOlWtF i JeZt ToTly gt Pwn'd!1!@/1'??"
"O rlY?!/1*!@1"
"yA rly!1!22"
pwn'd by Jedimintrick October 30, 2006
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past tense version of PWN. meaning one or more times in the past, you were beat out of your skimmies in some type of competition. also used when you beat someone else out of their skimmies in competition. usually used by rockstars and/or douchebags.
Douche: dude i just PWN'd that rockstar in chess!

Rockstar: dude i just PWN'd that douche's girl!
PWN'd by Conoax April 4, 2009
what I did with my neighbor's lawnmower.
I pwn'd that rusted crap for fiddy cent.
pwn'd by KAKA DOOKY April 14, 2006
having "the suck" orginally from a mistake made by warcraft. Associated with owned, same meaning
Ha ha! pwn'd!
Pawnination
pwn'd by Danno February 26, 2004

Myspace Pwn'd 

when you send someone a message over myspace and you get a nasty reply and you send back the best response you can to make the person angry and then you block them so they can't message you back
Guy: Hey check my youtube video out. Its so cool.
Girl: Wtf, soulja boy can rap better then that, fuckin lame.
Guy: Its very flattering for you to like my dick so much, but its not enough room for you on there, so jump the fuck off
Block The User
guy: myspace pwn'd
Myspace Pwn'd by hankydooodle3 April 3, 2009

pwn bak'd 

Getting your ass kicked, especially by means of flying knee or elbow in the face.
"Dude you look like shit, what happened to you?"
"I got pwn bak'd by a stage diving midget last night"
pwn bak'd by KJGFKJG April 19, 2008
Tense of pwn.

An internet chat language variety/version of the word "owned", used in the sence of beating/defeating/outclassing someone. Usually used in games such as Counter-strike or on messageboards when a user posts arguments or insults that can't possibly be counter-argued.

Arguably considered so-called "l33t-speak"
"I pwnd you that round" "You just got pwnd dude" "I am going to pwn you like I did your mother last night"
pwnd by Anton May 11, 2003