The most common and most likely answer to this crossword clue is the 4 plus 3 plus 6 letter word DOWN THE TOILET
D
O
W
N
T
H
E
T
O
I
L
E
T
Buddy explains!
The straight part
We know that "in a failed state" is the straight/definition part of the clue. The straight part is often a synonym or definition, in this case in a failed state = down the toilet.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.