Ruled when conditions were bad, say (7)

I believe the answer is:

reigned

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'ruled' is the definition.
('reign' can be a synonym of 'rule')

I cannot understand how the rest of the clue works.

(Other definitions for reigned that I've seen before include "Maintained high position" , "Ruled" , "Held sway" , "Was king" , "Was monarch" .)

I've seen this clue in The Daily Express.

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