No-good story about confusion (6)
I believe the answer is:
tangle
'confusion' is the definition.
(I know that tangle is a type of perplexity)
'no-good story about' is the wordplay.
'no good' becomes 'ng' (abbreviation).
'story' becomes 'tale' (synonyms).
'about' is an insertion indicator.
'ng' going into 'tale' is 'TANGLE'.
(Other definitions for tangle that I've seen before include "Confused interwoven mass" , "Seaweed; confusion" , "Knotted, twisted mass" , "'Twisted mess, muddle (6)'" , "Confused knot of something" .)