There is a common misconception saying that it's pwned because the O key is next to the P and people mean to write owned, but accidentally write pwned, and the name stuck. This is far from true. Pwned really means "Permanently Owned".
Mary: Jason, you're such a waste of everyones time. Go crawl in a hole and die.
Jason: ...
Bob: Dude, you just got pwned. (permanently owned)
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