Twitter flame war ignites as rumors of KATE GOSSELIN and her married bodyguard combusts in an incendiary fireball!

Octo-mom Kate hit up a Red Cross charity event in Philadelphia where a local journo spotted her getting cozy with hunky protector Steve Nield.

 “(Steve and Kate) were definitely together, at one point he had his arm around her, and there was no crowd near them,” Hughe Dillon told RadarOnline.com. “Wish I had thought of getting that shot, I don't know what I was thinking!”

The reporter referred to Neild as Kate’s boyfriend at one point and a twitter war ensued, with Kate calling Dillon, a liar.

 “I had a balls to the walls awesome time at#redball12 then Kate Goselin (sic) showed up and I got a shot that's gonna be seen around the world,” Dillon tweeted.

Someone asked if a photo of Kate was worth any money these days, to which Dillon replied, “The photo I have will be and she'll hate me for it – lol,” and “That's why I got the shot I did, cause I didn't get her on red carpet or get the tweet that told me she was there. I will say she is grouchy.”

Kate, who recently said that she’s single and lonely, defended herself on Twitter initially, writing “hi! I'm reading your tweets & am upset u are lying about me! I spent about 20 sec with u & gave you a pic…why the hate?” but then slammed his account of the night.

“wrong? I gave him a pic! He clearly will make up lies…for his own gain…it was a charity event??! Why does he thinks it's ok?”

Hughe wrote back, “I'm not hating on U. I'm just reporting what I saw, and what you did. Which part was lying?”

Kate who has 81,000 Twitter followers, continues to deny that anything inappropriate happened.