Seemed happy moving south — but deluded (6)
I believe the answer is:
misled
'deluded' is the definition.
(delude can mean to mislead)
I can't explain the rest of the clue.
(Other definitions for misled that I've seen before include "Given the wrong idea" , "Sent someone in the wrong direction" , "Cause someone to go in the wrong direction" , "as 15 [HOAX] did" , "Sent in the wrong direction or deceived" .)