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EMAIL SUPPORT INFORMATION:

Email address "hijacking"
(a.k.a. forging the return address)

Spam email can inconvenience you in (at least) two ways:

Receiving unsolicited commercial email messages that jams your inbox, but also
Having a spammer use your email address as the return address for the emails he sends out, and thus you receive all the Out-of-Office and NonExistent-Address replies that are generated by that mailing

You would notice this because your inbox becomes filled with returned emails and error messages—correspondece to and from addresses you've never heard of .

Using your email address as a fake return address is analogous to:

Putting someone else's address in the upper left of an envelope in the US Mail (anyone can write anything there and mail it, even at the post office lobby counter, no one ever checks)
Programming a fax machine's number (that is to be printed at the top of the received fax page) with someone else's fax number to make it look like the fax was sent by that other person's phone number.

This is casually called "hijacking" or "forging" an email address, although there are other uses of these terms for much more serious situations.

The good thing is that no one has broken in to your email account or web hosting account, and no security was compromised.

Unfortuantely there's nothing you can do about it except to wait it out. There are no filters that you should put in place. Spammers use a forged email address for a few hours (a few million emails sent out) and then move on to the next forged address in their list. They need to use valid email addresses since internet mail systems double check that the sender's address (albeit forged) is a valid address that responds "I'm alive" but they don't check that that was the real sender (which it wasn't).

Fortunately, most recipients of spam "understand" that this happens and will not blame you (if they even notice whom it listed as being from). Occasionally your domain name (or hosting company) can get blacklisted, but usually the blacklist mechanisms are smart enough to ignore this common type of fake address.