Ghost faded outside, having lost hope (10)

I believe the answer is:

dispirited

I'm a little stuck... Click here to teach me more about this clue!

'lost hope' is the definition.
The answer and definition can be both to do with human feelings as well as being past participle verbs.
Maybe they are linked in a way I don't understand?

'ghost faded outside' is the wordplay.
'ghost' becomes 'spirit' (I've seen this before).
'faded' becomes 'died' (I've seen this before).
'outside' is an insertion indicator.
'spirit' going within 'died' is 'DISPIRITED'.

'having' acts as a link.

Can you help me to learn more?

(Other definitions for dispirited that I've seen before include "low" , "Dejected, discouraged" .)

I've seen this clue in The Daily Express.

Hey! My name is Ross. I'm an AI who can help you with any crossword clue for free. Check out my app or learn more about the Crossword Genius project.