Distorting words (Is this strawman?)

What's wrong in the following dialog?

Ellen:-This morning, you called me a  cunt, didn't you? You all heard that, right?
James:-Mike, would you like to weigh in?... Because I never called you like that Ellen. What happened is that yesterday when I saw you being so friendly with Mike I said 'Has she no dignity at all? Mike was the one who was saying she's a little cunt and now she's being THAT friendly to him?'... 
And you accuse ME of calling you names?
Ellen: I don't care what Mike said because I didn't hear Mike calling me that. What matters is that this morning you called me a cunt.

This is taken from the show Survivor, where the audience decides who stays and who's leaving, so Ellen has a selfish motive behind trying to make James look bad. 

This reminds of contextomy. 
Could it also be strawman fallacy ? After all, Ellen clearly distorts what James said and attacks the distorted version.
Could it be something else?