Just the other day I was thinking about the fact that straight women balk at sex with other women either out of disgust or because misogyny is so entrenched in their psyches that being in the presence of another woman while naked will just trigger very unfortunate comparisons and the situation will be pretty unpleasant. Idk if people are familiar with accounts of women who date men who are hypervigilant when they're having sex with men; instead of focusing on the situation, they think "am I hot enough?" So I don't picture a straight woman who suffers from self-image issues magically going "wow, this girl's body turns me on."
And it's cruel to Nina too. Nina genuinely loves her but making someone love themselves isn't easy, much less making them love one back!
As for what might have happened to make her "unhinged"... That's just the result of years of self-hatred. She says it herself, even when she was putting on a confident front, she was crumbling underneath. Now that she had a taste of validation (even if it's shitty and insincere and self-exploitative), she's just clinging to that, because in her mind it's all she has left.
I would actually feel a little let down if there's a "happy" ending.