Dealing with personal failings requires transparency and taking responsibility. Attempting to conceal improper behavior inevitably leads to ruin, whereas acknowledging mistakes and changing one's path opens the door to forgiveness and mercy.
The primary approach among commentators is that hiding mistakes refers to a person who denies doing wrong and claims complete innocence. Such an individual will fail on multiple levels. Practically and socially, trying to cover up bad deeds is doomed because the truth eventually becomes public knowledge. When the lies are exposed, the person faces deep shame, and others will not forgive the actions since the cover-up proves a complete lack of regret [רלב״ג, מלבי״ם, שטיינזלץ]. On a spiritual level, hiding is entirely useless because God sees everything and knows the absolute truth [מלבי״ם, עמנואל הרומי]. Furthermore, the mere existence of a hidden wrong damages a person's ability to succeed in doing good, as the hidden fault extinguishes the positive act [חומת אנך]. A unique, alternative understanding frames this dynamic as an arrogant claim made by a wealthy person to someone living in poverty. In this view, the rich person argues that the poor man suffers because he hides his wrongdoings, while the wealthy man claims his own riches are proof that he has properly repented [אלשיך].
In contrast to denial, the proper path forward involves admitting to the actions and leaving them behind. This means openly confessing the wrongs and completely stopping the bad behavior with a firm commitment to never return to it [רש״י, מצודת דוד, עמנואל הרומי]. A person who takes this honest approach receives the exact opposite result of the one who hides: they will be shown mercy. There are different perspectives on where this mercy originates. One view is that it comes directly from God, who forgives and clears away the wrongdoings [מצודת דוד, עמנואל הרומי]. Another perspective broadens this to include human relationships, noting that people naturally tend to show mercy and offer forgiveness when they recognize sincere regret and a true departure from a destructive path [רלב״ג, שטיינזלץ].
This process raises a natural question regarding how a mere verbal confession can cancel out a physical act of wrongdoing. The answer lies in the power of sincere regret. When a person is truly sorry, God looks ahead to the future and sees the good deeds that this individual will eventually perform. Thanks to those future actions, God grants mercy in the present moment. In this way, sincere words and true regret successfully undo the physical act of the past [חומת אנך].