Fancy cups set out (7)
I believe the answer is:
suspect
'fancy' is the definition.
(thesaurus)
'cups set out' is the wordplay.
'out' indicates an anagram (out can mean wrong or inaccurate).
'cups'+'set'='cupsset'
'cupsset' anagrammed gives 'SUSPECT'.
(Other definitions for suspect that I've seen before include "Imagine to be true" , "Dodgy" , "Believe without being certain" , "Believe to be guilty, but without proof" , "Possible perpetrator of a crime" .)