Paradise Lost, not a complete loss of hope (7)

I believe the answer is:

despair

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'loss of hope' is the definition.
(I've seen this before)

I don't understand how the rest of the clue works.

(Other definitions for despair that I've seen before include "The feeling that nothing will turn out well" , "Abandon hope" , "An unhappy state" , "Praised (anag) - lose hope" , "First appearance" .)

I've seen this clue in The Hindu.

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