Okay I am a woman and even I think that is totoally wrong of her to assume you guys were dating when you told her you weren't looking for a relationship. Now I know women always get emotionally involved (not saying guys don't) but woman for the majority do more. So I am sure she is just trying to hold onto something that in her mind is perfect and since she has been hurt in the past, she is almost desperate to keep ahold of you. I say just break it off to her gently, it may still end up with her hating you, but its the best thing to do. Good luck.
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