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1337 is another way to type the word "LEET", as 1 looks like L, 3 looks like E and 7 looks like T. When used in Roblox, 1337 usually means elite, which is the word that leet comes from. 1337 can also refer to leetspeak, which is when people replace letters with numbers that look alike.
"I'm so 1337."
"1'm so c00l, I sp3ak in 1337 speak."