She fell out with Binky Felstead over her ongoing romance with love cheat Alex Mytton, and right now Lucy's caught in the middle as her BFFs Stevie Johnson and Stephanie Pratt try to figure out their relationship status.
Lucy, 23, tells us: "It's difficult... You take a risk when you're honest but I wouldn't have it any other way. I can't brush stuff under the carpet, it's not in my nature."
During the last series of Made In Chelsea, she and Binky fell out big style when Lucy openly disapproved of Binky's decision to give Alex another chance after he cheated on her repeatedly.
(And when we say 'openly disapproved', we mean she dished out that amazing eye roll which pretty much says it all).
"I've had times where I've looked out for someone and they throw it back in my face by going with that person anyway, then not wanting to be friends with me because their boyfriend doesn't like me," says Lucy.
Now that Binky has seen the light and ditched Alex, the girls are back to being friends and patched things up during a heart to heart on Made In Chelsea: New York recently.
Lucy adds: "I'm glad that she's rid of that negativity, she can move forward and be happy now."
Which means that Lucy has now turned her attention to American gal pal Stephanie and British bestie Stevie, who reunited at the end of the Chelsea crew's jaunt to the Big Apple.
Lucy reckons that the biggest problem for the on/off couple is geography: "They live in different countries. She's based here [in London] but she goes back to Los Angeles a lot because she has a family and a home there, so she'll never be here long term.
"They can be so cute together but they also argue. A lot has happened so I think it's hard for them to get past that."
As for her own love life, Lucy hasn't exactly had it easy.
The star, chatting to us to promote the DVD release of movie The Other Woman, dated a serial cheater when she was younger and the heartache she went through has made her want to protect her mates from going through the same.
In fact it was Lucy who revealed some of Alex's indiscretions to Binky, and now she says: "The truth always comes out so I prefer to get it over wth sooner rather than later, before they get too deep into something."
Since hitting our screens on the hit E4 show, Ms Watson has caught the attention of Spencer Matthews and Jamie Laing, and 'fessed up to smooching Proudlock during Made In Chelsea: New York.
And guess what? She now tells us that she's dating!
The Other Woman is out on Blu-ray and DVD on 13th October from Twentieth Century Fox Home Entertainment.
Grab your copy of this week's Reveal magazine to read more from Lucy… It's out now.
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