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Douglas Harper's Etymology Dictionary
pwned

"dominated, humiliatingly defeated, taken over," by 2001, "leetspeak" slang, probably from the common typographical mistake for owned (the -p- and -o- keys being adjacent on standard English keyboards) in the gamer slang sense "completely dominated by another" (in a contest).

Wiktionary
pwned

vb. (context internet slang leet English) (en-past of: pwn)