The 'Hunger Games: Catching Fire' actor was seen kissing the Mexican actress in September - just a day after confirming the end of his engagement to Miley Cyrus - but the romance is said to have broken down after he realised Eiza was using it as a publicity stunt.
A source told HollywoodLife.com: ''Liam told Miley he's not seeing Eiza anymore. He found out that she was tipping off photographers; she was totally using him! Miley is thrilled obviously -- it's street justice, especially after Eiza was so cocky about things.''
Miley - who has been romantically linked to music producer Mike WiLL Made It and Rolling Stone magazine heir Theo Wenner since splitting from Liam - is said to be pleased that the Hollywood hunk was used because he moved on from their long-term relationship quickly.
The source added: ''[Miley has] forgiven Liam. But his hook-ups with Eiza and the way he was so open about it really hurt her, so in a way she's kind of glad he got used. Maybe it was a lesson he needed to learn. They just started talking again so it's not like they're back together, but they're in a way better place, I could see them giving things another shot.''
Miley and Liam - who began dating in 2009 and later got engaged in June 2012 - are on good terms with one another and are said to have plans to see each other ''around Thanksgiving'' which will be celebrated on November 28.
The source explained: ''Liam and Miley are back in touch. They've forgiven each other, and are even talking about meeting up, probably around Thanksgiving.''
The actor says he isn't "holding out for more money or doing anything like that".
The drama will be making its return to the streaming service in the near future.
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