Blade waved about by Mike in confused situation (6)
I believe the answer is:
bedlam
'confused situation' is the definition.
(Bedlam can mean a state of chaos or madness)
'blade waved about by mike' is the wordplay.
'waved about' indicates anagramming the letters.
'by' is a charade indicator (letters next to each other).
'mike' becomes 'm' (phonetic alphabet: alpha, bravo, charlie etc.).
'blade' anagrammed gives 'bedla'.
'bedla'+'m'='BEDLAM'
'in' is the link.
(Other definitions for bedlam that I've seen before include "Blamed for deafening noise" , "Chaos - former asylum" , "Place of uproar and confusion" , "Place of uproar or madness" , "Mayhem" .)