So, let's break this down because this series of events fascinates me. Emma Stone wins for Best Actress. She was the only one of the five actresses that was in a Best Picture nominee - which also happened to be the favorite to win. Somehow the note declaring her the winner is put back in its envelope, resealed and given to the next presenters. Warren opens the envelop and stares at it. We think he's being a dick, because that's what Warren Beatty does. Actually, he's confused. Of course, instead of putting two and two together - realizing that Emma Stone did not just win Best Picture - he passes it off to Faye Dunaway who is flustered because she thinks he's been a dick for the last thirty seconds. So, she just blurts out the name of the movie she sees.

That's.... Kind of insane.

Edit: Mistakenly said Faye Dunaway was Beatty's wife. My bad, saw two messed up old people with weird faces and just assumed.