BiPolar ex-BFF is still spreading rumors and lies about me?

My former BFF who I haven't seen or talked to in over a year, has recently been spreading new rumours and lies about me in my hometown. Fortunately, I don't live there anymore. I live in the city about 45 minutes away, but it's getting really old. I had seen how mean and vindictive she could be but I never thought that sort of anger would ever be directed at me. She is a very vengeful person and I think that is because of her bipolar disorder. For instance, her ex-husband was awarded their Cadillac in their divorce proceedings and my ex friend was so mad about it that she peed in the car and beat it with a golf club before she gave it back to him. Pretty psycho, right?! Well, now that same blind rage is pointed right at me. She stopped speaking to me because I wouldn't break up with my fiance like she had ordered me to (I truly think it was because she didn't want me to have a man in my life.) Which resulted in her dropping our friendship but actually blaming me for dropping the friendship. She's twisted, what can I say. My problem is she is telling people I am harassing her via facebook when the fact is that I have her blocked, so how on earth could I be harassing her when there is no way for either of us to contact one another on the site? She has been casting me as the "crazy" person who she had to get away from & right before she dropped the friendship, she stole a bunch of items from me, like DVD's, some home decor and an a/c window unit! And now the gossipping! It's really too much. What should I do you guys??