Exaggerate, performing mad satire (9)
I believe the answer is:
dramatise
'exaggerate' is the definition.
(dramatising is a kind of exaggerating)
'performing mad satire' is the wordplay.
'performing' indicates an anagram (the letters move around or 'perform').
'mad'+'satire'='madsatire'
'madsatire' with letters rearranged gives 'DRAMATISE'.
(Other definitions for dramatise that I've seen before include "prepare for the stage" , "adapt for TV" , "Make out to be exciting or important" , "Overstate" .)