Tangled up the thread we twisted in coils (8)
I believe the answer is:
wreathed
'twisted in coils' is the definition.
'wreathed' can be an answer for 'twisted' (wreathing is a kind of twisting). I am not certain of the 'in coils' bit.
'tangled up the thread we' is the wordplay.
'tangled up' is an anagram indicator.
'thread'+'we'='threadwe'
'threadwe' is an anagram of 'WREATHED'.
Can you help me to learn more?
(Other definitions for wreathed that I've seen before include "Festooned (in); curled" , "Covered with garlands" .)