Mulroney was hit with backlash and axed from television gigs this week after her feud with lifestyle blogger Sasha Exeter was made public. Exeter showed screenshots of Mulroney allegedly threatening to sue her, in addition to referencing her friendship with Markle.
Markle, 38, has been telling friends that Mulroney's now-viral scandal has left her embarrassed, according to the Daily Mail.
"Meghan is absolutely mortified that she's been dragged into this complete mess," a friend of Meghan's told the outlet. "She said Jessica is in no way a racist, but the way she handled the situation (with the fashion influencer) was tone-deaf and heartbreaking."
Prince Harry's wife is now questioning how she can keep Mulroney in her inner circle. Mulroney has previously been known as one of the Duchess of Sussex's closest friends and was reportedly an unofficial wedding planner for Markle's 2018 royal wedding to Prince Harry.
"Meghan said friends reflect friends and because of what's at stake she can no longer be associated with Jessica, at least not in public," the source said. "She has to do what she has to do in order to preserve her dignity and her own reputation."
Mulroney and Markle reportedly met and became fast friends while the former American actress was living in Canada and filming "Suits."
Mulroney's missteps were first made public on Wednesday when Exeter shared a video on Instagram that she titled "MY 'AMY COOPER' EXPERIENCE" -- a reference to the white woman who called the police on a black birdwatcher in Central Park last month.
In the nearly-12-minute video, Exeter revealed that she had shared a "generic" call to action on her Instagram story in light of recent events, claiming that Mulroney "took offense" to the message.
"What happened next was a series of very problematic behavior and antics that ultimately resulted in [Mulroney] sending me a threat in writing last Wednesday," said the blogger.
It's unclear what exactly Mulroney said to Exeter.
Exeter stressed that she wasn't calling Mulroney a racist, but said that "she is very well aware of her wealth, her perceived power and privilege because of the color of her skin."
"And that, my friends, gave her the momentary confidence to come for my livelihood in writing," said Exeter, calling the incident a display of "textbook white privilege."
"For her to threaten me ― a single mom, a single black mom — during a racial pandemic blows my mind," the blogger continued. “The goal here is genuine, transformative change ― not optical and performative bulls--t. You cannot be posting that you stand in solidarity while attempting to silence somebody via text."
Mulroney issued an apology in the comments of the video.
"You are right when you say 'this s--t needs to stop,'" wrote Mulroney, per People. "As leaders, we need to join hands and call out wrongs. I know we have different experiences. And that is something that, even in the course of a heated argument, I need to acknowledge and understand. I am unequivocally sorry for not doing that with you, and for any hurt I caused."
Mulroney then referenced her relationship with Markle, 38, calling their relationship and the Duchess of Sussex's time in the spotlight "deeply educational."
"I learned a lot from that," admitted Mulroney. "I promise to continue to learn and listen on how I can use my privilege to elevate and support black voices."
After the public apology, Exeter shared a screenshot of a direct message that she received from Mulroney, which contained the threat of a lawsuit.
“Liable [sic] suit. Good luck,” Mulroney wrote.
Then on Thursday, Mulroney shared a statement of her own on the matter.
"As some of you may have seen, @SashaExeter and I had a disagreement," she wrote on Instagram. "She rightfully called me out for not doing enough when it came to engaging in the important and difficult conversation around race and injustice in our society. I took it personally and that was wrong. I know I need to do better. Those of us with a platform must use it to speak out."
As a result of the controversy, Mulroney's "I Do, Redo" was pulled from CTV and "Good Morning America" confirmed she would no longer appear as one of its fashion contributors.