I found this in the wikipedia , mostly because I was confirming what I thought this was (yes, you can laugh now Lando), and I figured it would be fun to post. If you are every confused about leet-speak, the wikipedia is where you go man, its awesome! So here is the history of PWNED.

The most widely held theory is that “pwn” originated from a typo in first-person shooter games, the common mistake occurred from a hand position. The user, using his mouse right-handedly, would hold three of his fingers on the keys, “a,” “w,” and “d,” along with the mouse in his right hand. When prompted to make a comment upon fragging his opponent, a quick motion to type the word “own” resulted in a typo. Due to the proximity of the keys on a standard QWERTY keyboard the user hit the “p” instead of the “o” key, resulting in the word “pwn.”

Some people believe that the word was originally a contraction of the term “power-owned,” “pure ownage,” “pistol-owned”, or “properly owned.” These are probably backronyms.

It has been suggested that the word resulted from a rendering problem from a specific game that made the word “owned” look like the word “pwned.” As a result, gamers considering themselves superior in skill started using the word as an obscure reference.

Finally, one other story reports that in the game Starcraft, someone set the option so that losing players would see a special message. However, instead of typing in “YOU WERE OWNED,” a typo resulted in “YOU WERE PWNED.” It is said that every use of the word “pwn” therefore comes from this one hapless misspelling, or a similar one occurring in a Warcraft or Unreal Tournament game.

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