Local men unravelled short blanket (3-12)

I believe the answer is:

all-encompassing

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'blanket' is the definition.
(I know that blanket can be written as all-encompassing)

'local men unravelled short' is the wordplay.
'unravelled' indicates anagramming the letters.
'short' becomes 'passing' (I am not sure about this - if you are sure you should believe this answer much more).
'local'+'men'='localmen'
'localmen' is an anagram of 'allencom'.
'allencom'+'passing'='ALL-ENCOMPASSING'

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I've seen this clue in The Daily Express.

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