1.
usually in video games, similar to being pwned, but worse. It's when a major bad ass get defeated by something weak or stupid. This references Al Capone, who was a major mafia boss who killed many people, but was sent to jail for tax evasion.
Mike: Dude, Jimmy kicks so much ass.
Frank: But he just accidentally blew himself up.
Mike: Yeah, he just got capwned
See pwned, owned, capone, al, untouchables, capwned, capwnd
2.
Refering to pwned, yet it sounds much better and has some relivence to the mobking Alfons Capone
Damn man, we got fucking capwned
or
Wooeee we capwned them noobs
See owned, pwn, pwned, own, capone