"There is no distinction between right and wrong" comes from Liu An's "Huai Nan Zi Xiu Wu Xun" in the Western Han Dynasty: "I recite it when quoting, and the distinction between right and wrong is unclear."
Confusing black and white is blurring the boundaries. Deliberately saying that black is white and white is black creates confusion. It refers to deliberately creating confusion and confusing people.
Right and wrong are indistinguishable.