In The Bachelor's second episode that aired on Monday night, Kelsey was looking forward to opening a bottle of expensive champagne she had brought to the Malibu mansion all the way from Iowa to share with Peter.
Kelsey set up a romantic scene by a fireplace with rose petals and her bottle on ice, but when she turned her back for a moment, she could hear Hannah Ann and Peter popping the bottle and enjoying her champagne together.
"I think, honestly, it was just a misunderstanding," Peter, 28, toldUs Weekly on Thursday.
"I know Hannah Ann, and she's not malicious in any way."
Kelsey accused the Tennessee beauty of stealing her bottle of champagne on purpose to get a leg up on her competition, but Hannah Ann swore up and down she had no idea the bottle belonged to another girl.
Regardless, Kelsey got extremely emotional and couldn't stop crying over her ruined moment with Peter and Hannah Ann's alleged betrayal.
"I know Hannah Ann did not do anything maliciously on purpose. I can promise you that," Peter told the magazine.
But in attempt to ease tension and lift Kelsey's spirits, Peter decided to open a different bottle of champagne with her.
When Kelsey took a sip from the bottle because no champagne glasses were in sight, however, the contents exploded all over her face. The night had turned into a nightmare for Kelsey.
Going back to "Champagne-gate," which was trending on social media earlier this week, Peter confronted Kelsey about Hannah Ann's bullying accusations -- saying he wasn't okay with that type of behavior behind the scenes.
"I didn't have a problem with [Hannah Ann] until she did what she did -- and she knew what she did," Kelsey claimed to Peter.
"But she's telling me that she didn't," Peter pointed out.
"And I'm telling you that she did. I don't like her," Kelsey countered. She can turn it on. She's trying to play the victim card, and she acts a certain way to you and then differently in the house... It's frustrating."
Kelsey added that she takes her character very seriously and never acted like a bully, especially since she had been bullied as a child.
"For her to act like I'm being malicious, it sucks," Kelsey noted. "There's a difference of saying not-nice words to her face and constantly bullying someone."
Peter didn't know what to do or whom to believe at the time because he was hearing two totally different stories.
Hannah Ann is currently a frontrunner on Peter's season given she received the First Impression Rose and also won the Revolve group date in which she had to model clothes on a fashion runway.