The most common and most likely answer to this crossword clue is the 7 letter word MISREAD
I've seen this crossword clue in The Guardian
M
I
S
R
E
A
D
Buddy explains!

The straight part
We know that "wrongly interpreted" is the straight/definition part of the clue. The straight part is often a synonym or definition, in this case wrongly interpreted = misread.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 MISREAD mean?
MISREAD noun- An instance of reading wrongly.
- To read wrongly, normally by accident; misconstrue; misinterpret; mistake the sense or significance of.