The two controversial brides were caught in a heated moment in Sydney's CBD, only a few days after the news broke about Michael's infidelity.
"Stacey was waiting for Hayley to return from the gym and ambushed her outside their apartment building," an onlooker told Daily Mail Australia.
"Hayley wasn't expecting to be confronted like that. I couldn't hear what they were saying, but Stacey was really upset over something," they continued.
"She was pointing at Hayley and getting really worked up as they argued with each other."
Earlier, Hayley's ex-TV husband dished on more details that went down between Hayley and Michael on the night they made out.
"We were sleeping in separate rooms by this stage," the MAFS groom revealed to news.com.au’s Not Here To Make Friends podcast.
"I was in Tash and Amanda’s old room... And I heard this absolute howling out the front, it was Vanessa, she was absolutely hysterical. It came out (through Josh) that Hayley and Michael had basically been having dry sex on Chris and Vanessa’s bed."
Vanessa Romito, fellow MAFS bride was in the room when Hayley and Michael made the shock move. She eventually told New Idea that it was so much more than a kiss.
"They were fooling around on the bed and dry humping. Shoes were flying everywhere," she said last week.
"Michael walked into our room. He was really drunk and so was Hayley. Hayley said, ‘my husband (David) doesn’t want to f--k me’. And I said, ‘mine doesn’t either’.
"[Michael] turned around and said, ‘I would f--k both of you’."
Michael initially denied that he could 'remember' any kiss happening, but later revealed to TV Week that it was a huge mistake.
"We were all joking and having a laugh. We were mucking around with the phone and were like, 'Oh how funny would it be if this got out?'" he told the publication.
"We were fully clothed, just being stupid, being loose, having fun, not really understanding the implications of what rumours can do to your life."
"We'd had a few drinks," he said. It got to the point where I was like, 'Did I kiss her? Didn't I kiss her?'"