Twists and the cotton's snarled: caught right inside (8)
I believe the answer is:
contorts
'twists' is the definition.
(contorting is a kind of twisting)
'the cotton's snarled caught right inside' is the wordplay.
'snarled' indicates anagramming the letters (to snarl can mean to entangle or twist).
'caught' is an insertion indicator.
'right' becomes 'r' (abbreviation).
'inside' becomes 's' (I can't justify this - if you can you should believe this answer much more).
'cotton' is an anagram of 'contot'.
'contot' enclosing 'r' is 'contort'.
'contort'+'s'='CONTORTS'
'and' is the link.
Can you help me to learn more?
(Another definition for contorts that I've seen is " Scorn tot - twists out of the usual shape".)