Capital upset with bad breaks (8)
I believe the answer is:
budapest
'capital' is the definition.
(capital of Hungary)
'upset with bad breaks' is the wordplay.
'with' means one lot of letters go next to another.
'breaks' indicates an anagram.
'upset' after 'bad' is 'badupset'.
'badupset' with letters rearranged gives 'BUDAPEST'.
(Other definitions for budapest that I've seen before include "Hungary's capital" , "Ernest Laszlo's birthplace" , "Put beads in the city on the Danube" , "Capital city on the Danube" , "capital of Europe" .)