The most common and most likely answer to this crossword clue is the 10 letter word OFFSETTING
I've seen this crossword clue in The Daily Telegraph
O
F
F
S
E
T
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I
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Buddy explains!
The straight part
We know that "Compensatin" is the straight/definition part of the clue. The straight part is often a synonym or definition, in this case compensatin = offsetting.The cryptic/wordplay part
In cryptic crossword there's often an wordplay/cryptic part as well.This part involves a more complex hint, such as an anagram, homophone, hidden word, etc.
Sadly, We don't have an explanation for this specific crossword clue yet.
What does OFFSETTING mean?
OFFSETTING verb- To compensate for, by applying a change in the opposite direction.
- To form an offset in (a wall, rod, pipe, etc.).
- The act of offsetting
- An amount offset