I think this is the biggest reason she lost. There's a limit to how much hyperbole (and that's being generous) and lies you can tell about someone before the words lose their meaning and people stop believing everything else you say. Not just from democrats (involved in politics) but the media as well. They made up their mind about Trump (probably via corporate smear campaigns) and were so openly biased against him it was despicable. People (I believe) knew that at best the truth was somewhere in the middle, or knew his whole campaign was being jinxed by very powerful people. And I think this was enough to persuade the swing voters.