from
Jargon File (4.4.4, 14 Aug 2003)
owned
1. [cracker slang; often written "0wned"] Your condition when your
machine has been cracked by a root exploit, and the attacker can do
anything with it. This sense is occasionally used by hackers.
2. [gamers, IRC, crackers] To be dominated, controlled, mastered. For
example, if you make a statement completely and utterly false, and
someone else corrects it in a way that humiliates or removes you, you
are said to "have been owned" by that person. When referring to games,
"I own0r UT GOTYE" means that one has mastered Unreal Tournament, Game
of the Year Edition to such a level that even the hardest AI
characters are mere lunchmeat, and that no ordinary mortal player
would even receive a point in competition. There are several spelling
variants: 0wned, 0wn0r3d, even pwn0r3d. Hackers do not use this sense.