Modesty is more than what we see on the outside or how we dress. Indeed the actual word ‘tzniut’ is the opposite of what is external. It is the underlying concept of looking deeper, within the person to see something greater than the sum of the parts.
Here’s a great article about how tzniut can unfortunately be lost within the system that is the yeshiva. Any institution that has a hierarchy or where individuals compete for attention can be a pool for bad middos, but this shouldn’t be the case in Torah institutions. Call me naive (or Baalei Teshuva) but I still have the dream that the real beauty of Torah, the depth and the genuine effort to ‘be good’ prevails.