And the never-ending Lindsay Lohan saga continues.

Not only is she reportedly seeking comfort in gallons of booze, her alleged assault victim, Tiffany Eve Mitchell -- who appears to be a Caucasian blond woman -- says that LiLo literally added insult to injury when she degraded Mitchell with a racial slur before decking her on Thursday morning.

TMZ (because obviously) reports that despite LiLo's lawyer's claims to the contrary, the actress is downing as much as two liters of vodka a day, and that she was already hammered when she showed up at that Justin Bieber concert Wednesday night. (Can't really blame her there.)

TMZ also chatted with a pal of Mitchell's about the fight that went down later on, and her revelations are a little bit baffling.

First: Mitchell was only having a "friendly conversation" with Max George of the Wanted, so LiLo got all jelly for nothing.

Now that that's out of the way, get a load of this.

Apparently, Mitchell is a "well-known psychic," even though we didn't hear of her until La Lohan popped her in the face, and approached Linds because she had a premonition about her. Which may or may not have included LiLo giving her 15 minutes of fame by cold-cocking her.

Anyway, she offered Lindsay a free reading, and the starlet reportedly refused, saying, "Give me my space." And as Lohan walked away, she called Mitchell a "f---ing gypsy," to which a friend of Mitchell's replied with fun phrases like "whore" (creative!) and "'Liz & Dick' sucked." (We see what she did there!)

Considering LiLo is proud of the little work she actually gets, that was the last straw -- and she punched Mitchell in the eye.

Mitchell's hubby said, "We are not Gypsies. That has nothing to do with our religion ... it was a racist comment. Just because your career went down the drain and your new movie sucks, you can't go around beating people up."

Fair enough, but his wife's psychic abilities probably suck too. If she were any good, she would have known to duck.

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