Can I use something like "I am caught in a controversy" to express that I am witnessing and confused by the controversy between other entities?
“You are caught in a controversy” would not lead me to think you are “witnessing and confused by the controversy between other entities”. Instead, it suggests you have become involved or embroiled in a controversy, either as a disputant or as the subject of the controversy. (Note that “You have been detected in a controversy” is a possible-but-unlikely interpretation as well. This is analogous to the more-common “You have been caught in a contradiction”.)
The original form, “I am caught in a controversy”, is not idiomatic and is less common and less literate than “I am caught up in a controversy”, which still means you have become entangled in a controversy. To express that you are witnessing and confused by a controversy, follow FumbleFingers' suggestion and say you are bemused (“perplexed and bewildered”) by a controversy, or say you are intrigued or diverted (entertained, amused, or perhaps distracted) by it.
As in any language, this is an idiomatic usage.
It is equivalent to saying
To be caught in controversy, you could either be
The idiomatic use of the word caught should be equivalently used in languages other than English too.
Other uses could be
You should be cautioned that the idiomatic use of caught is not the same as caught up - to be excited over, to follow fervently or feverishly the progress of the subject. You could be caught up without being a direct participant.