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use of the word cave

use of the word cave

i was Reading an article about politics and it says "a Wall Street journal headline from wednesday in many ways told the ridiculous tale of a very minor federal government shutdown and the subsequent cave by scared-of-its-own rethoric republic party"

I have many questions regarding this paragraph
1. I have seen in many parts the use of compounded words like this one: scared-of-its-own what does it mean?
2. what do they mean when they say and the subsequent cave?