10:24 AM PT -- Pauly tells us he was misquoted as far as his feelings about the Oscars jokes ... he actually thought Kimmel's monologue jab at him was "very funny," and even posted about it on IG.
However, he says he is critical of Hollywood as an industry ... and that's what he was referring to when he talked about people putting him down and "buying and selling" human beings.
Pauly Shore is pissed off at Jimmy Kimmel making him the butt of a joke during the Oscars ... saying it was gratuitous and hurtful.
The comedian/actor told Page Six how he felt when JK used him as a punchline while celebrating his 2 former costars from 'Encino Man' -- one of Pauly's cult classics from the '90s.
Turns out ... the jab left a wound. PS says, "We love to hate people when they’re on top. People wanted to smash me down and they did. I was always nice to everyone, always cool, I put my heart into all my films."
He adds, "You’re buying and selling a human being. Human beings have feelings, it’s not like selling real estate." He says he's quite happy for Brendan Fraser and Ke Huy Quan ... both of whom acted in 'Encino' and each of whom won their own statuette Sunday night.
Pauly goes on to talk about a comeback of his own and how he wants to get back into acting. At the moment, he's touring and about to hit SXSW soon -- he also teases a possible TV show that might come about that focuses on his upbringing from the '70s and '80s.
It seems having a couple of his old costars swing back into the spotlight has him itching for some of that too. Pauly ends by saying, "I am not going to stop. I’m going to keep going. I know I’m going to get that call, and get that opportunity. That’s what it's about."
While Pauly might be craving mainstream success again ... he's actually been steadily working. Dude's got roles racked up for just about every year going back to the 2010s/'00s ... albeit, none of those projects are as memorable as what he did in the 20th century.
If Brendan and Ke can do it ... anyone can, we suppose. Go get 'em, Mr. Shore!