The most common and most likely answer to this crossword clue is the 8 letter word OVERDOES
I've seen this crossword clue in The Sunday Telegraph
O
V
E
R
D
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More clues leading to the result OVERDOES
Buddy explains!
The straight part
We know that "Exaggerates" is the straight/definition part of the clue. The straight part is often a synonym or definition, in this case exaggerates = overdoes.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 OVERDOES mean?
OVERDOES verb- To do too much; to exceed what is proper or true in doing; to carry too far.
- To cook for too long.
- To give (someone or something) too much work; to require too much effort or strength of (someone); to use up too much of (something).
- To do more than (someone); to do (something) to a greater extent.