I’d have to say that it really looks like Hillary was caught in a gross exaggeration:

Hillary made the above statements in a speech where she was trying to taut her bonafides for that "3 a.m." call.

The Washington Post has given her statements "four pinocchios".  Sinbad (the comedian), who was there, also had a different recollection of the events.  Hillary initially pooh-poohed Sinbad.

But now, there’s video (see above).  And now, she’s starting to backwalk.  She apparently "misspoke", but that’s even a bit of a stretch.  She recounted the story several times and in several ways.  it wasn’t like a slip of the tongue.

All in all, not a good thing for the Clinton campaign.