Sorry, no online dictionaries contain the exact phrase opposite of exaggerate.
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Reverse dictionary results:
1. understate
2. blow
3. lay
4. agony
5. bull
6. extend
7. overreach
8. stretch
9. stretched
10. thick
11. gab
12. overdo
13. ham
14. monster
15. overcharge
16. overdraw
17. ease
18. heighten
19. deflate
20. bounce
21. enlarge
22. expand
23. fib
24. jazz
25. mug
26. myg
27. overplay
28. pessimism
29. pile
30. romance
31. shoot
32. slant
33. slanted
34. thing
35. adjunct
36. embitter
37. heightened
38. heightening
39. sicko
40. underdo

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