Lindsay Lohan took refuge in an Upper East Side hotel after her arrest for assault the other night and went into meltdown mode, insisting the whole thing "was a setup,' sources tell the New York Post. Lohan was weeping "and kept asking, 'Why does this happen to me? This is a setup! I don't deserve this ... It's not my fault!" In a story yesterday, the Post reported that LiLo's nightclub quarrel with psychic Tiffany Eve Mitchell stemmed not from an exchange of insults, but from a lost purse containing $10,000.
Lohan said she had given the money to her sister, Ali, who was holding it in a purse—which Lohan accused Mitchell of stealing. "I was trying to find out who stole Ali’s purse!" Lohan reportedly said. "I gave her the money for my family, to pay for my brother’s school fees!" Lohan went rummaging for the purse around Mitchell's friends, which led to a shoving match—but Lohan insists she never slugged Mitchell. Sources disagree on whether the purse was ever returned. Meanwhile, the Florida psychic has hired Gloria Allred—who is now representing her in the case. (Read more Lindsay Lohan stories.)