Become confused retracting upheld damage claims (5)
I believe the answer is:
addle
'become confused' is the definition.
'retracting upheld damage claims' is the wordplay.
'retracting' says the letters should be written backwards (I've seen 'retracted' mean this).
'claims' indicates the answer is hidden within the clue (the answer is held or claimed within the clue).
'eldda' is hidden in the letters of 'upheld damage'.
'eldda' back-to-front is 'ADDLE'.
(Other definitions for addle that I've seen before include "Mix up or confuse" , "Like a bad egg" , "confusing" , "Make rotten" , "(Of eggs) turn bad" .)