Cryptic crossword clue
Retired FBI agent sued criminal and cooled down

The most common and most likely answer to this crossword clue is the 7 letter word DEFUSED

I've seen this crossword clue in The Guardian
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Buddy explains!

The straight part
We know that "cooled down" is the straight/definition part of the clue. The straight part is often a synonym or definition, in this case cooled down = defused.
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 DEFUSED mean?

DEFUSED verb
  1. To remove the fuse from (a bomb, etc.).
  2. To make less dangerous, tense, or hostile.
DEFUSED verb
  1. To disorder; to make shapeless.

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