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The word underexaggerating is the present participle of underexaggerate.
Underexaggerate is a rare verb meaning to understate. The word underexaggerate is not recognized by any of the authoritative English dictionaries.
Here's a list of synonyms for understating.
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Present participle for to state something with less completeness than needed
“He tried to understate the severity of the issue, but his vague explanation left everyone confused.”
Present participle for to knowingly say that something is smaller or less important than it actually is
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