Small US state capital – not Hudson? (6)

I believe the answer is:

little

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'small' is the definition.
(I know that small can be written as little)

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

Can you help me to learn more?

(Other definitions for little that I've seen before include "Tell it (anag) - not a lot!" , "Peanuts" , "'Every ...... helps" , "petty" , "Of no great size" .)

I've seen this clue in The Guardian.

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