Lydia is PISSED that Jessie told Natalie (who now wants a house meeting) everything that she told him this morning. They go back and forth about how they're both blamed for their "partners" (Natalie and Kevin) words. He claims that he's in the trenches for her - "they are throwing grenades, and I'm picking them up and throwing them back".
Dumbest statement of the fight comes from Lydia - "it's easy to pick on me because of how I look." Um, no, Lydia, it's because you're acting idiotic.
I have to hand it to Jessie - he's able to take anything either of these twits say and turn it back on themselves. Within five minutes, Lydia believes that Jessie revealed NOTHING to Natalie, and that Kevin is to blame for all of her problems.