verb (used with object), ex·ag·ger·at·ed, ex·ag·ger·at·ing. to magnify beyond the limits of truth; overstate; represent disproportionately: to exaggerate the difficulties of a situation. to increase or enlarge abnormally: Those shoes exaggerate the size of my feet.

Does the word over exaggerated exist?

Over-exaggerate is certainly in current use. The OED has three citations from 1900, 1928 and 1984 supporting the sense of the act of exaggeration which is in or to excess, too much, too.

What do you call an exaggerated?

0. hyperbole. (Uncountable) Extreme exaggeration.