"(KC called and said) 'Hey babe do you mind if Michael and I caught up for drinks, he's coming to Sydney?'" she explained.
Stacey said she was upset because she consider KC one of her "closest friends" on the controversial reality TV experiment.
"That hurt me the most, that she was there when I was hurting," the law graduate said, explaining she'd confided in KC about her relationship.
Time is a great healer, and Stacey said she is now "fine" with the couple dating and "hopes they are happy".
Which is for the best, as KC and Michael's relationship appears to be going from strength to strength.
The loved-up pair are both living together in Melbourne, and KC regularly gushes about Michael, declaring her love for him.