Inside celebrated having exceedingly bad reputation (8)

I believe the answer is:

infamous

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'having exceedingly bad reputation' is the definition.
I can't judge whether this definition defines the answer.

'inside celebrated' is the wordplay.
'inside' becomes 'in'.
'celebrated' becomes 'famous' (synonyms).
'in'+'famous'='INFAMOUS'

Can you help me to learn more?

(Other definitions for infamous that I've seen before include "Of evil repute" , "Disreputable" , "Disgraceful" , "Notorious, having very bad reputation" , "Dishonourable" .)

I've seen this clue in The Telegraph.

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