The Collaborative International Dictionary of English v.0.48:

Overdraw \O`ver*draw"\, v. t. [imp. Overdrew; p. p.
   Overdrawn; p. pr. & vb. n. Overdrawing.]
   1. To exaggerate; to overdo.
      [1913 Webster]

   2. (Banking) To make drafts upon or against, in excess of the
      proper amount or limit; to draw more than the balance in
      one's account.
      [1913 Webster +PJC]

WordNet (r) 3.0 (2006):

overdraw
    v 1: draw more money from than is available; "She overdrew her
         account"
    2: to enlarge beyond bounds or the truth; "tended to romanticize
       and exaggerate this `gracious Old South' imagery" [syn:
       overstate, exaggerate, overdraw, hyperbolize,
       hyperbolise, magnify, amplify] [ant: downplay,
       minimise, minimize, understate]

Moby Thesaurus II by Grady Ward, 1.0:

66 Moby Thesaurus words for "overdraw":
   aggrandize, amplify, ballyhoo, belie, build up, burlesque,
   camouflage, caricature, carry too far, color, disguise, distort,
   draw the longbow, embellish, exaggerate, falsify, fudge, garble,
   go to extremes, hyperbolize, inflate, lay it on, magnify,
   make much of, miscolor, misquote, misreport, misrepresent,
   misstate, misteach, overcharge, overdevelop, overdistend, overdo,
   overestimate, overexpand, overextend, overpaint, overpraise,
   overreach, overreact, oversell, overspeak, overspend, overstate,
   overstrain, overstress, overstretch, pad, parody, pervert,
   pile it on, puff, slant, strain, stretch, stretch the truth, swell,
   talk big, talk in superlatives, tout, travesty, twist, understate,
   warp, wrench