Crossword Genius

State of an American boxer in capsized craft (9)

Ross

I believe the answer is:

australia

I'm a little stuck... Click here to teach me more about this clue!

'state' is the definition.
(I know that Australia is a state)

'an american boxer in capsized craft' is the wordplay.
'an american' becomes 'aus' (I can't explain this - if you can you should believe this answer much more).
'boxer' becomes 'Ali' (Muhammad Ali).
'in' is an insertion indicator.
'capsized' shows that the letters should be reversed in order (in a down clue, the word turns upside down).
'craft' becomes 'art' (both can mean cunning or trickery).
'art' reversed gives 'tra'.
'ali' placed within 'tra' is 'tralia'.
'aus'+'tralia'='AUSTRALIA'

'of' is the link.

Can you help me to learn more?

(Other definitions for australia that I've seen before include "Island continent" , "Smallest continent" , "Largest island in the world" , "English speaking nation" , "Derby winner" .)

I've seen this clue in The Times.
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