A source tells PEOPLE that all is well between Khloé Kardashian and Kylie Jenner amid Tristan Thompson's latest cheating scandal

There’s no bad blood between Khloé Kardashian and Kylie Jenner.

Kardashian’s boyfriend, Tristan Thompson, allegedly cheated with Jordyn Woods, Jenner’s best friend. Despite the tangled web, a source tells PEOPLE that Kardashian, 34, isn’t blaming Jenner for any part of the scandal.

“They are fine,” the source says. “They are sisters and they will always love each other.”

“She understands it’s not Kylie’s fault,” the source added. “Kylie is a full time mom and busy. Nothing to do with her.”

On Tuesday, TMZ and Hollywood Unlocked reported that Kardashian and the Cleveland Cavaliers player split after he was unfaithful to her with Woods, who is also a member of the Good American squad, representing Kardashian’s clothing brand.

Credit: Kevin Mazur/WireImage

Within an hour of the reports, the NBA star issued an apparent denial, writing “FAKE NEWS” in all caps before deleting the tweet.

Jenner, 21, had laid low on social media since the cheating scandal news broke, but then posted two late-night selfie videos from her kitchen early Thursday morning, in which she flaunted her stomach in a leopard print cropped pajama top and matching bottoms.

While the alleged affair feels like a deep betrayal for Kardashian, the rest of the family is hurting as well.

“It’s all a mess now. Everyone considered Jordyn family. She was like a family member and always invited everywhere,” a source told PEOPLE. “The family helped her and wanted her to be able to have a business venture too.”

Jordyn Woods and Kylie Jenner
| Credit: Jordyn Woods/Instagram

Woods’ future relationship with the family — especially Kylie — remains uncertain.

“Jordyn has been like Kylie’s sister. They were inseparable, and always together,” the source said. “Jordyn often helped Kylie with Stormi. Kylie was always so excited to have Jordyn around. It seems Kylie isn’t sure what to do, but it seems impossible for her to keep Jordyn around.”

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Previously living at Kylie’s home, Woods is now “moving back to her mom’s house,” one insider said. “It’s been a difficult time and she’s broken up about it. She’s heading home to be with her mom.”

A source told PEOPLE that the Kardashians found out about the scandal on Monday.

“The whole family is furious,” the source said. “They were blindsided.”

Reps for Kardashian and Thompson have not returned PEOPLE’s requests for comment. Woods’ rep had no comment.