My friends and i think that one of our good friends has been making up fake people, is she crazy?

my friend goes to the same school as me but she doesnt live in the same city. in grade 8, she mentioned to me and my other best friends about her friends that lived in her city. she told us all a bit about them and how they were supposidly all good looking. since these friends of hers were all guys, she decided to match every one with their own guy. i was put with this guy Blake, and my friend Megan was put with this guy TIno Valentino. she would draw pictures of them with us, and when we were finally suppose to meet them, something bad supposedly happened to all of them. the guy Blake, was sent to rehab in British Colombia, and the guy Tino, was sent to juvi, somewhere far. me and my best friends were devastated because we really wanted to meet them and they would apparently say good stuff about us to our friend who lives in the other city. i ended up getting a letter from the guy Blake, but my friend had given it to me. she told me he gave it to her before he left for rehab. my friend Megan also got a note too. we both realized that they had the exact same writting as our friend (the girl who lives in the other city). we ended up forgetting about everything, but my friend Megan then started talking to one of the girls OTHER friend, Jake Danzo. but she would only talk to him online. ALSO, we've never seen pictures of them or have any proof of them. anyways, Megan ended up falling in love with this guy Jake, and he was suppose to come down from Ontario (where he supposidly lives) but everytime he was supose to come, there was an excuse. first it was because of his soccer camp, then he randomly had to go to New Orleans with his friend. he never ended up coming down. Megan was extremly depressed. This happened last summer, and now that me and my friends are in grade 11, we started brining it up again. we were going through all the little things that just quite didnt add up. we came to the conclusion that these "guys" were fake. i ended up confronting the girl who lived in the other city about it, and as soon as i asked her if they were real people, she turned beat red and was saying like "ohh..what do you mean? i dont understand". it was extremly awkward. that night, she apparently started throwing up and hyperventalating. she called my friend Megan saying how she didnt wanna be alone and that she was scared that she wasnt going to able to prove to us that they actualy existed. i can't mention all the details to this story, or else you'd be reading this for hours. But me and my friends need serious advice. we dont wanna let this slide, considering someone got hurt in the process of this. we want to know the truth. what do you think about the situation? did she make all this up?