tvam -- you; vasudevah -- Vasudeva; bhagavan -- the Supreme Lord; avatirnah -- descended; jagat -- of the universe; patih -- the master; iti -- thus; prastobhitah -- emboldened with flattery; balaih -- by childish men; mene -- he imagined; atmanam -- himself; acyutam -- the infallible Lord.

Paundraka was emboldened by the flattery of childish men, who told him, "You are Vasudeva, the Supreme Lord and master of the universe, who have now descended to the earth." Thus he imagined himself to be the infallible Personality of Godhead.