West Indian bats in a hat, pinching a single (7)
I believe the answer is:
haitian
'west indian' is the definition.
(Haitian is an example)
'bats in a hat pinching a single' is the wordplay.
'bats' indicates anagramming the letters (slang for mad).
'pinching' means one lot of letters goes inside another (taking inside).
'a single' becomes 'I' (one).
'in'+'a'+'hat'='inahat'
'inahat' anagrammed gives 'haitan'.
'haitan' enclosing 'i' is 'HAITIAN'.
(Other definitions for haitian that I've seen before include "Native of one West Indies republic" , "Port-au-Prince native" , "Caribbean native" , "Port-au-Prince resident" , "type of French" .)