The most common and most likely answer to this crossword clue is the 5 plus 8 letter word SPELL DISASTER
S
P
E
L
L
D
I
S
A
S
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R
Buddy explains!
The straight part
We know that "That could do it" is the straight/definition part of the clue. The straight part is often a synonym or definition, in this case that could do it = spell disaster.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.