During her acceptance speech after winning Best Female Video for 'I Knew You Were Trouble' - a song which she's previously said was inspired by the One Directioner - she said: "I also want to thank the person who inspired this song, who knows exactly who he is, because now I got one of these."
Harry has now spoken about her comments during an interview with Extra, telling them: "It's alright, she likes a joke. I like a joke as much as the next guy, so it's all good."
When asked about being pictured with her at a VMAs after party, he added: "Yeah, I went for a drink with Ed (Sheeran) and some friends. It was good."
Harry's bandmates have also spoken about the incident, with Louis Tomlinsonjoking to Us Weekly: "We were a bit confused. We thought she was actually calling out Niall [Horan], so the whole thing's a bit confusing."
Liam Payne also added: "I just thought it was a bit not needed. I mean, you just won an award. It's like, 'Concentrate on yourself!'"
Taylor also appeared to tell One Direction to 'shut the f**k up' when they appeared on stage, in a video that has since gone viral on the internet.