Toy hippos loosely stuffed with twisted rag -- that's about right (10)

'toy' is the definition.
Both the answer and definition are singular nouns.
Maybe they are linked in a way I don't understand?

'hippos loosely stuffed with twisted rag that's about right' is the wordplay.
I cannot quite understand how this works, but
an anagram of 'rag' is 'gra' which is within the answer.
'right' could be 'r' (common abbreviation) and 'r' is found in the answer.
an anagram of 'hippos' is 'spioph' which is located in the remaining letters.
No letters remain.
This explanation may well be incorrect...

Can you help me to learn more?