Why is she living in denial. I don't even think she likes her current boyfriend?

She is dating a guy just to get at her, so if I were you I wouldn't talk to her for a while if she is going to be so rude about her new boyfriend and tell her that you don't have feelings for her either. Whatever she does you can do it right back.Just don't take it to far because to an extent it just becomes and immature game.