Should she really be that mad at me?

Kay so Me and this girl used to be like best friends but I don't even know what happen there now we just talk occasionally and chill once and a while. but see there's this guy that I met and have been hanging out with him lately, and now I kind of like him, and were actually almost going out like we chilling and going out, and talking and stuff and we have hooked up before. but now the other day I heard that my friend heard I was hanging out with him and she's freaking on me because apparently she likes him. but I never knew that. She is even more mad at me because I won't stop seeing him. Should I really stop seeing him? cause I really like him, and we've became really close before I knew she liked him. and she's going to the extend where she's talking sh*t about me to every one saying I play guys and everything. and that's is most defiantly not true!

So should she be that mad at me? am I doing wrong by staying with him? what should I do?
Should she really be that mad at me?
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