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The word "overstating" is correct and usable in written English.
You can use it when you want to emphasize that something is being exaggerated or overstated, usually to a greater extent than it should be. For example, "His claims of success were overstating the reality of the situation."
Dictionary
overstating
verb
Present participle of overstate
Exact(60)
As the Electoral Reform Society argues, Britain's voting system is overstating differences so that they create national and regional divides.
"The proponents could well be overstating the cost of disposing of dredge spoil on land but the government doesn't know because it's simply relying on the proponent's word, even though the proponent obviously has a direct conflict of interest," Waters said.
"The other thing is the free next-day delivery – I would not be overstating things to say this alone has changed my buying patterns.
Judging by Valerie Lawson's biography, Mary Poppins She Wrote, stories of this wrecking anyone's life are overstating the case.
He wasn't overstating his case: I have never been on a road as spectacular.
Ms Polese has the personal blessing of John Doerr, the boss of Kleiner Perkins, who is seen as someone who can make and break careers.That may be overstating Mr Doerr's power.
That may be overstating its literary qualities but "Cheat and Charmer" is an accomplished work of commercial fiction.
THAT might be overstating things a bit, but as Salon's Andrew Leonard points out, all the tea leaf reading during the NAFTA debates failed to note what presdential candidate Barack Obama had to say about globalisation in his book The Audacity of Hope:We can try to slow globalization, but we can't stop it.
It also understated its profits, rather than overstating them.
They embezzle billions of dollars by overstating their imports and pocketing the difference.
That may be overstating the case; but it is certainly not a magic salve that can be applied without consequence.
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Since I tried Ludwig back in 2017, I have been constantly using it in both editing and translation. Ever since, I suggest it to my translators at ProSciEditing.

Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com