Well, I don't think it can be fixed. Here's a long story put short:
1. A friend of mine tells me that she has cancer. I take it as valid seeing as anyone can get it.
2. She moves over the summer.
3. Word spreads that she died last night.
4. I am told by a teacher that it was a rumor that SHE made.
5. We all learn that everything she said (even the cancer bit) was a lie.
And as my mom says, "There are 2 things in life I hate: a theif, and a liar."
It was beyond rude imo, so she just spoiled her own friendship. And she got herself into the mess in the first place.