The Awards shows are probably one of the crazier concepts we at the Traitor Game community have come up with.
First off, the whole concept of the powers that be behind the Traitor Games arranging an Award Ceremony around them makes no sense from an 'in-universe' perspective. Why would awards be given to characters over their actions in the Games? But this is a case where the Rule of Funny and the Rule of Cool both apply.
For those who don't read TV Tropes, I'll explain both of them. The Rule of Funny is that if something's funny enough, it doesn't matter if it doesn't make any sense. The Rule of Cool, similiarly, is that if something's cool enough, it doesn't matter if it doesn't make any sense.
Basically, the Award Shows are, in addition to being a means of parodying awards shows, a means of just having fun roleplaying without dealing with the drama and tension of the Traitor Games. The characters can just hang out, if they want to, without worrying about who's a Traitor, an Agent, or a Vigilante.
So who cares if the basic concept makes no sense, as long as it's an excuse for us to have some fun?