Twist no good in story (6)
I believe the answer is:
tangle
'twist' is the definition.
(I know that tangle is a more specific form of the action the twist)
'no good in story' is the wordplay.
'no good' becomes 'ng' (abbreviation).
'in' indicates putting letters inside.
'story' becomes 'tale' (synonyms).
'ng' going inside 'tale' is 'TANGLE'.
(Other definitions for tangle that I've seen before include "Confused mess" , "Confused state; seaweed" , "Jumble" , "Entwine, snarl" , "Seaweed; confusion" .)