Lindsay Lohan reportedly tore it up at a club after attending an event for amfAR - the American Foundation for AIDS Research - in New York City on Feb. 6.
A source told Us Weekly that Lohan tore a lengthy, beaded gown Lohan borrowed from designer Theia Couture for the amFAR event.
"She said that the dress had ripped [at a club after the fundraiser] - she couldn't possibly wear it like that - so her stylist friend went to the club bouncer and requested some scissors to repair the torn part of the dress," the insider said.
"She turned it into a mullet! Only a fashiony person would do that!" the source added
Us Weekly has posted before and after pictures of the dress, which was valued at $1,750. When Lohan wore it to the amFAR event, it was long enough to reach the floor. But another photo shows that the dress had been cut to half its normal length.
"The dress was loaned in good faith to Phillip Bloch, Lindsay Lohan's stylist," a representative for Theia Couture said in a statement to ABCNews.com. "We were informed by Mr. Bloch's assistant that the dress was damaged during the course of the evening. The dress has not been returned, and it wasn't until we saw the photos in the media, that we became aware of the actual condition of the gown."
A representative for Lohan did not immediately respond to request for comment.
The magazine previously reported that Charlie Sheen offered to chip in for payment of the dress on Lohan's behalf before his "Scary Movie 5? co-star borrowed it.