The Jersey Shore star previously branded Danica "one of the fakest people [he's] ever met" after she accused him of acting like an "immature 17-year-old".
A few hours later, Danica and Lorenzo exchanged compliments and hugs in the garden.
Danica asked Lorenzo for a "proper hug" after claiming that what she said to The Situation "needed to be done".
She then claimed that Lorenzo would have a girlfriend by Christmas. When she asked him what type of girl he is looking for, he replied: "Somebody just like you. If we could clone you, that would be the girl."
The Italian prince then embraced Danica, admitting he is "a big squeezer" before kissing Danica on the cheek.
Samantha Brick had earlier commented on the love triangle that has emerged in the house, saying that The Situation has been "well and truly rinsed" by Danica.
"She's been through his make-up like a rat down a drain pipe. He still doesn't understand how she makes her money and how men exchange gifts to exchange in conversation," Samantha declared.
"He has fallen for her and I think she has been playing him and Prince Lorenzo like a fiddle."