Crossword Genius

Hold out a loose end that's damaged (5)

Ross

I believe the answer is:

holed

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

'damaged' is the definition.
Although both the answer and definition are past participle verbs, I cannot understand how they can define each other.

'hold out a loose end' is the wordplay.
'out' is an insertion indicator.
'end' says to take the final letters.
The last letter of 'loose' is 'e'.
'hold' going around 'e' is 'HOLED'.

'that's' is the link.

Can you help me to learn more?

(Other definitions for holed that I've seen before include "Perforated" , "Punctured" , "Likely to sink" , "Potted (ball)" , "Pierced side" .)

I've seen this clue in the Evening Standard.
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