Moretz said she meant no ill will towards the pop star and the headlines were twisted.
"What actually happened was they asked me about the question of the word 'squad'. What I said was I don't like the word squad because it does create exclusivity. But it was never against Taylor, and it was never against her squad," Moretz told Andy Cohen on Monday's Watch What Happens Live.
Moretz, 19 added that her quotes were taken out of context because "social media and the public" likes turning "women against women, which has been happening for years."
Speaking to Complex earlier this year, Moretz said of squads, "They appropriate exclusivity. They're cliques!"
During the same interview, Moretz said she was asked to join Swift's squad but declined to elaborate any further.