This isn't an inability to differentiate fact from fiction, this is parasocial relationship bullshit.
...This isn't related to her relationship with that momo-kid at all though?
Hell, Cover made it explicitly clear they would stand behind their talent's right to have private lives. Her termination comes due to very serious violation and information sharing of other people in Cover to 3rd parties... alongside other stuff that seems serious enough that it called for immediate termination rather than graduation.