Over exaggerated
In the context of this passage, which is talking about how Facebook is attempting to cut down on incorrect, fake, or 'sensationalized' news, the word clearly means news that is not true or over exaggerated in a way that makes it 'click bait'-something that isn't clear, objective content.
Correct me if I'm wrong but I believe it is phrase or clause containing three or more words at the beginning or end of a sentence.
