Over-optimization
Over-optimization is pushing on-page and link signals so aggressively (especially exact-match anchors) that the profile looks manipulated instead of natural.
Over-optimization happens when SEO tactics that help in moderation are dialed up past the point of believability. In link building the classic example is an anchor profile stuffed with exact match anchor phrases: if 40% of your inbound links say "cheap car insurance," no organic linking pattern looks like that, and the imbalance itself becomes a signal of manipulation.
It matters because Google's google penguin algorithm and its successors specifically target unnatural anchor and link patterns. Over-optimized sites can see rankings drop for the very terms they targeted, an outcome sometimes called an anchor-text penalty. The same logic applies on-page: keyword-stuffed titles, repeated headings, and forced internal anchors can tip a page from optimized into spammy.
The honest fix is to think in ratios, not maximums. A natural profile is dominated by branded anchor and naked url anchor links, with exact and partial match anchor variants used sparingly. When you cannot control the anchor (which is most of the time with genuinely earned links), variation tends to happen on its own. Aim for diversity rather than perfection.