Days after Christmas, the yogi came under fire after a Twitter thread accused her of overstating her Spanish background and even faking an accent in interviews.
"She's appalled that her real past is coming out now," says a source of the former dancer, whose bio, circulated in press releases, lists her birthplace as Mallorca — despite being born in Boston.
"She's based her entire career on the fact that she had Spanish roots. But clearly, those roots don't go very deep, because now she's clarifying that she was born in Massachusetts and spent part of her childhood in Spain."
In the wake of a social media onslaught — including statements from former classmates who claimed Hilaria, 36, went by "Hillary" in high school and spoke without an accent — the mother of five posted a lengthy Instagram video attempting to defend herself, quickly followed by Alec's own taped statement.
Though admitting that she's "a white girl," Hilaria stated that she and Alec are raising their brood of five — daughter Carmen, 7 and sons Rafael, 5, Leonardo, 4, Romeo, 2 and Eduardo, 4 months — "bilingual, just as I was raised."
"She sees this as a misunderstanding — her Spanish heritage was a big part of her upbringing in the U.S. — and Alec is supporting her," says the source. "He won't tolerate anyone trolling his wife."
While Hilaria hopes to put the controversy behind her, "she's worried there will be more digging into her past," adds the source. "She's adamant there's nothing scandalous, but she doesn't want the negative attention hurting her image."
However, she's already facing the consequences, as Cuties Baby Care announced they were terminating their partnership with her. But at the same time, some of Hollywood is hoping to capitalize on the attention she's receiving, as a source told OK! she's being considered for the next season of Dancing With the Stars.
"This is TV gold for Tyra Banks and Dancing With the Stars. Tyra has made the show exciting again and isn’t afraid to cast controversial people on it,” an ABC insider revealed. “Hilaria is exactly the sort of star Tyra wants. They will let her wear Spanish costumes when she performs and even cook her paella backstage.”
A second source claimed that Baldwin is "secretly loving all this attention"