The 23-year-old singer opened the awards ceremony with a circus-themed performance of her recent single We Are Never Ever Getting Back Together and mocked the One Direction singer - who she split from earlier this year - as she ad-libbed during the song.
Using a British accent, she sang: "So he calls me up and he's like, 'I still love you,' and I'm like, 'I'm sorry, I'm busy opening up the Grammys'. And we're never getting back together, like, ever." Taylor wasn't the only star to cause a stir on stage at the Staples Center in Los Angeles.
Kelly Clarkson made the audience laugh with her speech when she picked up the trophy for Best Pop Vocal Album for her 2012 record Stronger, in which she admitted she never expected to win the prize and paid tribute to her "sexy" fiance Brandon Blackstock.
She said: "I got stuck to Miranda Lambert. There's a story and a song. For later, after alcohol. I'm just kidding, children. I get nervous speaking in front of people.
"I didn't know I was going to win because I literally, I was so excited to be in a category with Fun. I have been covering you all summer. I'm sorry, I love that song. I think it's so awesome. I love Pink. Everyone - Adele - that I was in a category with. Miguel, I don't know who the hell you are, but we need to sing together. I mean, good god, that was the sexiest damn thing I've ever seen. What? Anyway, thank you so much, friends, family, label, my manager Narvel [Blackstock, Brandon's father], my fiance, who is sexy tonight.
"I did not think I was going to win. Thank you!" Kelly later performed The Tennessee Waltz and You Make Me Feel Like A Natural Woman as part of a tribute to Lifetime Achievement Award winners Patti Page and Carole King.