From The Collaborative International Dictionary of English v.0.48 :
overcompensate \overcompensate\ v.
to make excessive corrections for fear of making an error.
Syn: over-correct, compensate too much.
[WordNet 1.5]
From WordNet (r) 3.0 (2006) :
overcompensate
v 1: make up for shortcomings or a feeling of inferiority by
exaggerating good qualities; "he is compensating for being
a bad father" [syn: cover, compensate,
overcompensate]
2: make excessive corrections for fear of making an error [syn:
over-correct, overcompensate]