Deceptively situated (5)

I believe the answer is:

lying

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'situated' is the definition.
(I've seen this in another clue)

I cannot understand how the remainder of the clue works.

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(Other definitions for lying that I've seen before include "Anything but upright" , "Prone or supine" , "Prone; fibbing" , "Spread out" , "So one can't stand" .)

I've seen this clue in The Globe and Mail.

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