I agree with lilypup in that I'd move away from this friendship. You don't necessarily need to cut ties with this friend, but I wouldn't be close friends with her as she sounds like a drama machine. And believe me when I say that you'll definitely get sucked deeper and deeper into her drama...this time was bad enough, but it can get much, much worse. I've cut ties with a number of dramatic people in my life and it is so nice living a much more peaceful existence.