Thought you said his dream was shattered (8)
I believe the answer is:
misheard
'thought you said' is the definition.
I can't tell whether this definition defines the answer.
'his dream was shattered' is the wordplay.
'his dream' can be anagrammed to 'MISHEARD'.
But, I'm not sure how the anagram is indicated.
Can you help me to learn more?
(Other definitions for misheard that I've seen before include "(Of speech) not understood correctly" , "Caught (words) incorrectly" , "Failed to listen correctly" , "wrongly caught" , "as was 1d [KISMET] by Hardy?" .)