Whats going on here, can somebody explain?

It unfortunately sounds like someone you know closely had hacked into your account. I'd look at this situation with suspicious eyes because it could be anyone that you know personally. I do think it's a little suspicious that your one contact is the one that says you have had this conversation and such. If you do trust this person very well and have no reason to believe they are lying, then I would look otherwise but it all seems a little too peculiar to me.