Did I lose a good friend?

Hm maybe like 4-6 months ago.. I had this really great friend (let's call her Alisha), we got along real well and had a lot in common. Well then maybe about 3 weeks of hanging out with her, her cousin started hanging out with us. She was kinda cool. I...

mean, she wasn't the best person to hang out with. She often yells at me, commands me to do things and like I just didn't really like her. But I went along with it. Soon she started like getting really touchy.. she'd like hold my hand and like kiss me on the cheek. Honestly, it kinda really did freak me out.. I kinda just stopped talking to them. Although, I continued talking to Alisha. After awhile I realized they hung out with new people. It's been awhile now, just recently I realized that it kinda seemed like they have gotten really close.
I'm not sure if I'm jealous of the other girl that Alisha has gotten really close with, but I feel as if I lost a friend. A good friend.
Did I make the right decision in stop hanging out with them?

I don't think you necessarily have to cut all ties with her. You can tell her that her cousin makes you uncomfortable and you'd rather just hang out with her by yourself. If she gets mad at you for not liking her cousin then maybe you're better off without her as a friend.

I have not cut all ties with her. We still talk, we just don't like hang out like we used to. I hang out with a different group of friends, but me and Alisha still talk.
I just feel as if I lost a friend because now it seems like she's more happy hanging out with her new group of friends. I don't know though.

well, if you don't mind, you can hang out with her new group of friends. then you don't have to cut ties with her. plus you have new friends.and about the cousin, you just have to tell her (the cousin) when you can't stand anymore. 'because between friends, it's okay to argue or quarrel.