Joey stars in the police brutality drama as a young black man stuck in a time loop and forced to relive his shooting death at the hands of a white police officer every day.
The short was directed by Travon Free and Martin Desmond Roe, and was produced by the likes of Diddy, actor Jesse Williams, and basketball superstar Kevin Durant, with the filmmakers accepting the Academy Award at the Los Angeles ceremony on behalf of the whole team.
Diddy has since shared his joy at the big win online, after watching the televised event from the comfort of his own home and calling Joey to congratulate him on the huge success of "Two Distant Strangers".
Insisting he was "incredibly blessed" by the honor, he posted on Twitter, "Words can't describe how I feel right now winning alongside my brothers @JoeyBadass @VanLathan @Travon @iJesseWilliams @KDTrey5 #TwoDistantStrangers #Oscars [sic]."
Diddy also shared video footage of himself celebrating the news with Joey on a FaceTime call, in which he shouted, "I'm so proud of you, n**ga. What the f**k! Wouldn't be no Oscar if it wasn't for you, king [sic]!"
Meanwhile, Travon also spoke to Diddy backstage at the Academy Awards, as the rap star shouted in celebration and expressed his pride at the directorial duo.
The award is Diddy's second Oscar - he also claimed gold in 2012 when he executive produced American football documentary "Undefeated".