Shy type limps out of Olympics (3)
I believe the answer is:
coy
'shy' is the definition.
(I've seen this before)
'type limps out of olympics' is the wordplay.
'type' indicates anagramming the letters.
'out of' is a deletion indicator.
'olympics' with 'limps' taken out is 'oyc'.
'oyc' anagrammed gives 'COY'.
(Other definitions for coy that I've seen before include "Group of soldiers" , "not forthcoming" , "Military team in brief" , "Demure, like Marvell's mistress" , "Pretending to be shy or bashful" .)