How is understatement different from just being modest?

fromUnderstatementin Figures of Speech
Understatement is a deliberate rhetorical choice for effect, while modesty is a character trait. Understatement creates ironic emphasis—the audience understands the real significance. Modesty simply avoids overstatement without rhetorical intent.

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Understatement

Deliberately downplay something for dramatic or humorous effect.

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