Make excessive corrections for fear of making an error(verb)
WordNet. Princeton University. 2010.
Use "over-correct" in a sentence
"Mr. MARKS: By having so many foreclosures on the horizon, we're going to over-correct, and the market will go even lower than it would normally go, prices will just do a downward spiral, and we won't have a functioning market out there."
"When us humans come out of a suboptimal experience, we tend to over-correct in the opposite direction in our next experience."
"To simply let the housing market rapidly correct itself (or more likely over-correct) would result in massive societal disruption, possible violence and unnecessary suffering."