Taylor Swift and Blake Lively are "taking some space" in their friendship, a source tells PEOPLE, as other insiders shed light on their strained relationship amid Lively's Justin Baldoni legal battle.

Blake Lively's friendship with music superstar Taylor Swift is now at the center of her legal battle with her former "It Ends With Us" co-star Justin Baldoni. In a new court filing Wednesday, attorneys for Baldoni claim Lively pressured Swift to get involved in the legal back and forth, which first began in December.

Before there was the Baldoni/Lively battle, there was the John Legend/"Bad Blood" incident. So maybe everybody has it all wrong?