In essence, a literal misstatement (4)

I believe the answer is:

gist

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'in essence' is the definition.
'gist' can be an answer for 'essence' (synonyms). I am not sure about the 'in' bit.

I don't understand the remainder of the clue.

Can you help me to learn more?

(Other definitions for gist that I've seen before include "Real point or substance" , "The central point of anything" , "Pith, essence" , "The substance of a text" , "Main idea, kernel of matter" .)

I've seen this clue in the Evening Standard.

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