Fairy-tale characters in leprechaun realm (6)

I believe the answer is:

unreal

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'fairy-tale characters' is the definition.
I can't judge whether this defines the answer.

'in leprechaun realm' is the wordplay.
'in' indicates a hidden word.
'UNREAL' is hidden in the letters of 'leprechaun realm'.

Can you help me to learn more?

(Other definitions for unreal that I've seen before include "Lacking in substance" , "Not actually existing" , "Lacking material form" , "Existing only in the imagination, not actual" , "Fanciful" .)

I've seen this clue in The Irish Times.

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