There are three possiblities:
1. Faye Dunaway simply assumed La La Land would win, and announced it - but this is unlikely. Not only is she an experienced actress and knew hundreds of millions of people were watching, but she knows how to read scripts.
2. Faye Dunaway was told or given the info that La La Land had won prior, and she thought reading the envelope was a formality.
3. Faye Dunaway knew the Oscars had switched Moonlight as the "winner" at the last moment, and she decided to sabotage the whole shebang.
During the 2015 Miss Universe pagant, the wrong name was read, but there were two names on the card.
Not so here: