"Miley did not want to rush into anything. She and Kaitlynn have been close friends for a long time and things got romantic. Miley was ready to call it off because she wasn't ready for a relationship. She needs to be by herself," an insider told TMZ.
People magazine reports the abrupt decision left Kaitlynn "surprised and upset".
It comes after video emerged of Cyrus canoodling with Aussie star Cody Simpson, 22, in a Los Angeles grocery store.
Following its release, the singer took to Instagram where she penned a long post to set the record straight on her dating life.
"Men (especially successful ones) are rarely slut-shamed. They move on from one beautiful young woman to the next, most times without consequences … where women are called sluts/ whores," she said.
"I know the public feels invested in my past relationship because they felt like they saw it thru from the beginning.
"This dating thing is new to me too. I've never been an "adult"/ grown ass woman experiencing this … I was in a committed relationship for almost all my teens and early 20's, with the exception of a few breaks.
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"I would like to share an activity with someone I am dating and not be stuck at home with nothing to do.
"Please don't make this awkward for me. I am trying to make light and like always make fun of myself … get used to me dating — this is where I am at! #hotgirlfall"
In response to the TMZ footage, she posted part of it with a note saying: "Can a girl not get a f***ing acai bowl and a morning make out session in peace?!"
The Aussie singer and Cyrus have been close for years and have often been spotted hanging out.