An understatement is a figure of speech employed by writers or speakers to intent
For example, you win 10 million dollars in a lottery. When you tell a news reporter “I am delighted,” you are making an understatement. Similarly, suppose a team loses to its opponent 50 to 0 in a soccer match, and the captain of the team says in a post-match ceremony, “We did not do well,” it is an understatement because he is trying to decrease the intensity of the loss.
An understatement usually has an ironic effect, as an equally intense response is expected in severe situations, but the statement in response is the opposite of what was expected. For instance, your friend returns your new coat with a large wine stain on the front of it. In response, you make an understatement, “It doesn’t look too bad.” Therefore, an understatement is opposite to another figure of speech, hyperbole, which is an overstatement.
ionally make a situation seem less important than it really is.