Having been given encouragement, he's spurned! (3)

I believe the answer is:

ned

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

'having been given encouragement he's' is the definition.
The definition suggests a singular noun which matches the answer.

'spurned' is the wordplay.
'NED' is hidden in amongst the letters.
But, I'm unsure how the hidden word is indicated.

Can you help me to learn more?

(Other definitions for ned that I've seen before include "A den for Edward" , "rough" .)

I've seen this clue in the Evening Standard.

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