Yield in disgrace, defeated (4)
I believe the answer is:
cede
'yield' is the definition.
(I know that yield can be written as cede)
'in disgrace defeated' is the wordplay.
'in' says the answer is hidden in the clue.
'CEDE' is hidden in the letters of 'disgrace defeated'.
(Other definitions for cede that I've seen before include "21 across" , "Relinquish control of" , "Give up (territory)" , "Surrender or yield" , "Surrender or relinquish possession" .)