It marks the latest incredible twist in UKIP's history of feuding and follows a fractious leadership contest over the summer prompted by Nigel Farage's decision to step aside.
So why after such a victorious June, on the winning side in the EU referendum, is the party again at breaking point?
Well, the punch-up between two UKIP MEPs was allegedly over suggestions that Mr Woolfe had been considering defecting to the Conservatives.
Maybe not a surprise when he believes he was deliberately stopped from running for the leadership in July by members of the National Executive Committee.
UKIP is not a big party, there really are very few people at the top, and so like any small "community" loyalty is expected and disagreements almost inevitable.
But the schism within UKIP is bigger than that, it essentially boils down to the Farage supporters and those who dislike, even hate him.
Nigel Farage continues to dominate the party externally and internally.
On the one side you have Douglas Carswell - UKIP's only MP, Suzanne Evans and Patrick O'Flynn - who don't like Farage's illiberal focus, message on immigration and how he has managed the party.
And on the other side, most of the party's MEPs, councillors, Steven Woolfe and the party's major bankroller Arron Banks are loyal to Farage, ultimately because he has taken the party so far.
Mr Banks has told me if Neil Hamilton and Douglas Carswell remain in the party, and the NEC decides that Steven Woolfe cannot run for leader, he will be leaving UKIP.
It would be a bitter blow as he is one of very few donors.
The two sides are locked in an almighty battle and have been for some time. As Arron Banks alludes to, something will have to give.
I'm told Suzanne Evans is almost certain to run for the leadership.
So it would be Woolfe versus Evans, both could prove to be successful leaders but would take UKIP in different directions.
I'm not convinced such a small party can continue much longer to accommodate both without meteorically tearing itself apart.
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