The former So Solid Crew star was quoted by Now as saying that he and Cole had a "relationship", though Cole laughed off the claims.
MC Harvey and Now initially appeared to stand by the story, and emails between the pair were "verified" by a lawyer working for the magazine.
He later admitted that he had "never been with her" but added that he "never claimed to have had a relationship with her".
MC Harvey has now told Heat: "I never said that [we had a secret relationship]. I am mortified. It's made me paranoid and it's got to the point where it's become exhausting."
He added that the pair have never been in a room together alone, nor kissed or had sex, adding that he was "devastated" people thought he had a secret romance with Cole.
"I was so looking forward to seeing the interview, 'cos it had been such a big in-depth chat about my life and my career," MC Harvey said.
"Then I walked in and saw a massive picture of Cheryl Cole and the headline ['My secret romance with Cheryl']. My heart went into my mouth."
> MC Harvey: 'I've never been with Cheryl Cole' - video
> Cheryl Cole launches legal action against 'Now' over MC Harvey story
Despite admitting that Cole's statement that they had just met twice in person was "bang-on correct", the rapper said: "I was disappointed in her. She tweeted to 1.5 million people.
"I was thinking, 'Why are you doing this?' Cheryl doesn't tweet regularly. I was so disappointed. I was like, 'Why are you going to turn this into a public war? Why did you have to do that?"
MC Harvey explained that he and Cole had a "communication relationship" for five months over email which eventually "fizzled out".
He rejected claims that the whole incident was a publicity stunt, adding: "All of her fans definitely won't buy my single after this... I've got all of them hating me for something that I didn't do."
MC Harvey added that he would not sell the content of the emails between him and Cole, adding: "I'm sorry. I'm not going to sit here and say I'm sorry for everything, because I never lied. I'm not a liar.
"She knows that and she valued me. I am protective over her personal life and I would never disclose any of that - if I did, I'd be a b**tard."