You know, if you say just "Я потеряла друга/подругу" you might be misunderstood. People merely may decide that your frind is dead, because of an illness, or a road accident, or a war, and so on. I don't want to say people will understand you exactly in that way, but they can have a mistake. In order to avoid this situation you'd better to say "Мы поссорились [с моим другом / моей подругой]", or "Мы разругались [в пух и прах / смертельно / вдребезги / вдрызг (not much literary variant)]". The less dramatic variant: "Мы раздружились с ней / ним". Vladimir Vysotskiy in one of his songs about a secret of an Indian yogi, he sang : "...Но поссорились мы с ним \ В дым!". So, the phrase "поссорились в дым" means you lost your friend because of a quarrel. Honestly, the last variant "в дым" is rarely used (and is not much literary one, too), but if you say this, you'll be understood properly.