There are three visibility options in Special:CentralAuth to set to user accounts: visible, hidden and oversighted. The second one (hidden) has the following description: "Account is hidden from public lists". This is not true.
What 'hidden' actually does to the best of my experience and understanding is to simply hide the account from Special:GlobalUsers. That's hardly hidding an account name from public lists since the account will still display on logs and edit histories.
The only option that totally removes an account from public lists is the 'oversighted' one.
The messages centralauth-admin-status-hidden-list, centralauth-admin-action-hide-lists and centralauth-admin-hidden-list need to be reworded as long as its functionality remains just what it is now: remove the account from Special:GlobalUsers (and prevent displaying CentralAuth data to users w/o centralauth-lock permissions).