The 35-year-old housemate was at breaking point as housemates were called to give nominations, but in a cruel twist, were screened throughout the house as fellow stars watched on from the sofas.
Kim chose to nominate enemy Nicola, claiming she had told lies about her.
Following the nominations, Nicola furiously asked Kim what she had “supposedly” lied about, but Kim was having none of it and told her to accept the nominations, adding: “I will not rise to your bait.”
As some of the housemates were in the living area, Nicola decided to explain to Speidi the reason why she is angry with Kim, adding that the 74-year-old had brought her children into an argument and called her a “bad mum".
Spencer recalled that this was during face-to-face nominations, but Kim has since denied saying it.
Celebrity Big Brother 2017: Nicola McLean RAGES at 'f**king liar' Kim Woodburn AGAIN
F**king liar. Liar. Tell everyone how I'm a liar Kim. Tell them. Tell everyone how I'm a liar. You're a liar. You're a fraud.
Nicola pointed and waved her arms at Kim, screaming: "F**king liar. Liar. Tell everyone how I'm a liar Kim. Tell them. Tell everyone how I'm a liar. You're a liar. You're a fraud.
"You're a liar and couldn't keep up your hype and now you're just looking like an idiot. Fact! Liar! Shut up. Shut up. Liar."
Kim replied: "Dear god. No, you truthfully are looking like the idiot. You stupid little woman… honestly."
Later at the table, Nicola told her fellow housemates: "I've asked her what the lie is, that's the only thing I've got a problem with."
Calum Best, 35, said: "She couldn't even man up and say it," before Jedward, 25, added: "It is good to clear it up."
Celebrity Big Brother 2017: Nicola McLean previously fell out with Speidi
Celebrity Big Brother 2017 highlights
Tue, January 17, 2017
Celebrity Big Brother 2017: The best bits from the latest series including all the arguments, kisses and Tony the Pony.
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Celebrity Big Brother viewers were surprised to hear Kim Woodburn urging Chloe Ferry to become an escort
Spencer Pratt, 33, waded into the debate, saying: "That was the time where she gets to go 'boom' and hit exactly what it is. Exactly."
Speaking of the earlier incident, Calum added: "That was her moment, if she wanted to go she could have gone 'this is what you lied about' and you could have been like 'no I didn't'."
A flustered Nicola replied: "She's got nothing. I don't f**king need to lie about any of you. She said to me that I told Chloe that she said I was a bad mum. No! I didn't. Chloe heard what she said in the task and Chloe interpreted it as a bad mum. If you say your kids aren't proud of you, what are you saying?"
A while later, Kim and Nicola were still having their “liar” argument, where Kim told Nicola: “Grow up, you’re a mum," as Nicola snapped: “And you’re not, that’s your problem, if you wanna go low, I’ll go lower."
Celebrity Big Brother continues tonight on Channel 5 at 9pm.