pwned.nl

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Background Information
Starting on the popular online first-person shooter Counterstrike around 1999, users of the clan myg0t are dedicated to disrupting online gameplay, an activity they refer to as "raging." Today, they span several other games, such as Quake, Unreal, Warcraft, Lineage, and Everquest.

The Video
In 2003, myg0t member Stoned Gorilla uploaded a flash animation called "I hate yuo myg0t" to newgrounds.com (link), depicting a stereotypical Counterstrike player being raged by myg0t and losing his temper, eventually leading to a school shooting. While this video was not very popular, Stoned Gorilla uploaded a sequel in 2004 called "I hate yuo myg0t 2."

This animation drew much more attention, spreading to other sites such as Youtube. Eventually, it was given its own dedicated website Pwned.nl. Since its launch, Pwned.nl still receives one million unique views per year.

Spread
According to Urban Dictionary, "pwned nl" refers to the highest level of being pwned. It can be assumed that this term derives itself from this video.

Quoting the video was very popular on the myg0t forums, and is now considered an old meme.

The video has also been referenced on the popular stop-motion animation Robot Chicken, Season 1, Episode 14: