OH NO HE DIDN'T!
But yes this really did happen.
We swear the world took a collective intake of breath when Gary quipped that he couldn't concentrate on Tulisa's criticism as he was too distracted by her fag breath!
Yeah, bad breath is bad enough but as a singer, fag breath is probably the last thing you want 12.5 million people to know.
Related Story: [Tulisa is a vision in white at the launch of her autobiography]
Tulisa's face looked like a dropped pie and when she managed to gather her thoughts she quickly retorted that Gary stank of red wine.
At which point we wondered what exactly Louis Walsh stinks of?
Twitter reckoned moth balls.
However, the best bit of the whole fag breath drama? Louis Walsh's face:
In other X Factor news, Ella Henderson received her first proper critique of the series when Nicole suggested her song was in the 'wrong key'.
And it seemed Nicole had a bit of a grumpy hat on tonight after she also called Jade Ellis' performance 'frightening'.
At this point we, and we reckon Jade, were convinced she was going to add '-ingly GOOD!' when she er, didn't.
We swear we even heard Jade giggle in anticipation of a double bluff.
In other news, we still well fancy James and he is most definitely fast becoming our favourite after another stunning performance.