What does it mean if I was told I "over wound" my watch?

You really can't "over wind" a watch, at least not without taking out a pair of pliers and really cranking on the winding crown well past the point of it being hard to turn. If you have been told that your watch is "over wound", it means one of two things:
The person who told you that the watch is over wound doesn't know what they are talking and isn't honest enough to admit it.
The person who told you that the watch is over wound either doesn't want to try and fix it, or can't fix it and isn't honest enough to admit it. They are also willing to make it sound like it is your fault by saying that "you over wound it."
Either way, you can take it as a sign that you should never try to have a watch repaired by them and that you should always go somewhere else.
Watchmakers who blame problems on a watch being over wound are like car mechanics who blame problems on gas tanks being over filled. Most people would laugh if they were told their car's flat tire was caused by over filling their gas tank, but they accept a broken roller jewel as being caused by over winding. There are many reasons why a watch won't run, just like there are many reasons why a car won't run. Neither a car with an empty gas tank nor a watch that is wound down will run. If cars didn't have fuel gauges, I suppose that most people would at least try filling the gas tank first, just like most people try winding the watch first. Being the last person to fill the gas tank doesn't mean you broke the car, nor does being the last person to wind the watch.

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