Crossword Genius

Can its occupants figure to be in a nasty hole? (5)

Ross

I believe the answer is:

hovel

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'hole?' is the definition.
(thesaurus)

I can't explain the rest of the clue.

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(Other definitions for hovel that I've seen before include "shed" , "Shanty; hut" , "Poor dwelling place" , "dump" , "Mean home" .)

I've seen this clue in the Evening Standard.
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