What does the cryptic crossword clue "High observation point has observer covering US state (5)" mean?

The wordplay uses a container (one word inside another). RI (synonym="Rhode Island, US State") in EYE (synonym="observer") = EYRIE The answer is EYRIE.

High observation point has observer covering US state (5)

Independent Cryptic #11978 | 29 Across | 2025-02-28 flower

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