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This likely refers to the "cracker" or the individual who redistributed the modified file.
Legitimate "Panda" mods exist, such as Panda Anti-Exploit , which is designed to prevent server exploits and combat cheats.
This term indicates that the original software—possibly a paid or private cheat client—has been bypassed to allow free use.
Many "cracked" clients (e.g., renames of DoxWare or ThunderHack) are "ratted," meaning they give an attacker full control over your computer.