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Meaning:
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to make (something) seem larger, better, worse etc than if really is

overstate, embellish

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Cases of word usage

1) to make (a person or thing) appear larger (as with a lens or microscope); to exaggerate (something) (magnify)

2) to exaggerate (the report of a happening, one's feelings etc) (overdramatize)

EXAGGERATE as in Wiktionary
EXAGGERATE as in Wikipedia