Paloma Diamond Urges Academy to Look Inside After Excruciating Oscar 'Loss'

Paloma Diamond* -- the super famous Hollywood actress -- suffered another disappointing loss at the Academy Awards on Sunday night, marking her 20th Oscar nomination gone up in flames.

TMZ caught up with the sad-eyed Paloma outside NYC's iconic Dakota apartment building, where John Lennon was fatally shot in 1980 (yikes!), to grill the film sensation on what went wrong for the umpteenth time at the Oscars.

Well, at first, Paloma tried to stay mum on the ugly sitch, but we pressed her until she finally spilled her guts ... telling us the Academy needs to "look into itself," when it comes to voting. And, she gave the Academy even more hell, but you'll have to watch the clip to catch it all.

By the way, Paloma lost her 20th Best Actress nomination this year to Jane Farroway for her role in "The Face In The Mirror At The Back of the Room."

While Paloma was gracious going down in defeat -- again! -- She didn't shed one tear, leaving that to Farroway, who broke down onstage while accepting the Oscar for Best Actress.

Farroway also gave Paloma props, saying, "There's only one person in this room who deserves this award more than I do, and that's Paloma Diamond. I share this with you!"

What class!

Paloma's movie credits include such classics as "Breathe" (2024), "The Day Hell Froze Over" (2003) and "Destiny & Deceit" (1984).

So don't despair, Paloma. There's always next year!

Or not.

(*) If you haven't figured it out by now, Paloma Diamond is no famous Hollywood actress and has never been nominated for anything at the Oscars ... she's just a funny character played by Julian Sewell on TikTok.