Usually means: Incorrectly underestimating; coined by Bush.
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We found 3 dictionaries that define the word misunderestimate:

General (2 matching dictionaries)
  1. misunderestimate: Wordnik
  2. misunderestimate: Wiktionary

Business (1 matching dictionary)
  1. BuzzWhack (No longer online)

Definitions from Wiktionary (misunderestimate)

verb:  (nonstandard, malapropism or humorous) To underestimate mistakenly or wrongly; to misestimate with an error on the lower side.

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