Question: Is there a fallacy here, and how to respond to it?

Your question gets more into philosophy and psychology than logical fallacies. Liz is making a claim that her feelings are causing her to take action X. This may or may not be the case. Her "reasoning" is that her feelings determined the action. Again, this might be the case, or might not. As a social psychologist, I can sympathize with her position since social influence can be extremely powerful. Did she not have a choice in the matter? That might get us into the topic of freewill, which is a mess. I might provide Liz with the quote by Eleanor Roosevelt who said, "Nobody can make you feel inferior without your consent." The point being, we do have control over how we let people affect us.

I see no obvious fallacy here or problem with her reasoning. Her problem appears to be allowing others to control her emotions to the extent that it causes her and others harm.