Hatchling hiding tail with it (4)

I believe the answer is:

chic

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'with it' is the definition.
(both can mean fashionable)

I don't understand the remainder of the clue.

(Other definitions for chic that I've seen before include "Snazzy" , "Trendy" , "Smart and stylish, in a French kind of way" , "Fashionably elegant" , "Fashionably smart" .)

I've seen this clue in The Independent.

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