In NASA lab, a mad state (7)

I believe the answer is:

alabama

'state' is the definition.
(Alabama is an example)

'in nasa lab a mad' is the wordplay.
'in' indicates a hidden word.
'ALABAMA' can be found hidden inside 'nasa lab a mad'.

(Other definitions for alabama that I've seen before include "Somewhere in US" , "Southern American state" , "US state west of Georgia" , "State of southeastern US" , "US state known as the Heart of Dixie" .)

I've seen this clue in The Times.

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