It all kicks off when during a game of 'Never I Have Ever' when Chloe confronts Megan, accusing her of sleeping with her boyfriend Jake at some point - something which Megan strenuously denies.
Now a new preview ahead of tonight's episode shows the start of their clash.
When the question, 'Never Have I Ever Slept With Someone Else's Boyfriend' is posed, an awkward silence is in the room before a teary-eyed Chloe says to Megan: "I've had a phone call from Jake, that he wants to have a conversation about you."
Kate Wright interrupts: "I've received tweets, Jake has, Chloe has, saying 'Jake and Megan have slept together, it's going to come out soon' and it is common knowledge."
Chloe continues: "I basically asked him if he had your number in his phone and he said 'no'. But I saw the number in his phone. There were phone calls recently, why is that?"
A baffled Megan - who is dating Pete Wicks - says: "Because I know Jake, I don't know what to say."
Megan dismisses that there is any truth to the rumour, and as poor Bobby Norris tries to calm down the situation, you can sense the tension in the room...
Watch a clip below:
Being grilled by Chloe, Megan admits she has had phone conversations with Jake.
A shocked Chloe seems baffled, saying: "Jake has never ever said to me 'I've spoken to Megan McKenna on the phone.'"
Megan tells her: "Well maybe you need to speak to Jake about that."
We've already been told that viewers will see a Megan Meltdown as a further confrontation between Megan and Chloe occurs the morning after.
Chloe tells her: "Well something has happened between you - you kissed him? If I am honest what I have heard of you I don't like, that you sleep about and you're trashy."
Megan "You don't know me, I have had boyfriends the whole time. You're calling me a slag but I could count the boys I have slept with on my left hand. Who do you think I have slept with?"
Chloe's boyfriend Jake has since taken to Twitter ahead of tonight's episode, writing: "I'm not even gonna let this load of bollocks wind me up."
Ex On The Beach star Megan has also seemingly brushed off the rumours by posing up a storm with Pete.
Try Reveal's digital edition on iPhone & iPad. Subscribe now & never miss an issue!
10 reasons why we want to be in TOWIE: