A spokesperson for the 22-year-old confirmed she'd been fired, admitting her contract was terminated for 'lateness, attendance and turning up to set unfit for work because of alcohol consumption'.
Now sources have claimed Stephanie, who played Sinead O'Connor in the Channel 4 soap, cost bosses 'thousands' by failing to show up to set.
An insider told the Mirror: "The decision to let Steph go was not taken lightly.
"It means planned future plot lines being scratched, frantic new writing to fill the gap, and story lines having to take a totally new direction.
"It's a massive headache, and will mean the show is playing catch up for the next few weeks."
This week it was alleged that Stephanie had feigned illness to continue partying in Marbella earlier this month.
A holidaymaker told The Sun: "Steph was absolutely hammered – she was all over the place. I asked to take her picture but she refused, saying her Hollyoaks bosses weren't supposed to know she wasn't still in hospital."
But Stephanie has hit back at the reports, telling her fans not to believe everything they read.
She tweeted: ""I would like to thank all of the fans for your continued support and not believing everything you read. I'm excited to embark on a new adventure and already excited with things to come.
"U guys have been amazing and I love you all!!! Thank you! Stephanie xxx [sic]."