I have been betrayed and isolated by my advisor and I am mentally drained. What should I do now?
So essentially, what you need is someone to take you on as a PhD. It looks like your current advisor just isn't interested in having you be her PhD student. This other professor is interested in having you as a PhD student, but you aren't interested in his research.

It sounds like neither of these is an option for doing a PhD. This means that you need to find someone else to be your advisor. Think about who else is in your department.

Other than that, your only choices are probably to find a job or leave the country.

(I'm not mentioning trying to apply to another university because I think admission season is almost over for most, but there might be some places still accepting applications.)



Post-edit things:


  Why would she lie about this? Is this normal?


First of all, you don't know if she lied. You have no idea under what constraints she operates. Yes, you've been told first-years get funding, but a PhD is more than a year, so what is she supposed to do with you after that, if she really doesn't have funding? That would have been worse, spending a year working for her and then being deported, don't you think?

Secondly, if she did lie, she might have done it because she doesn't tell you what's really preventing her from taking you on. What if you're not as good a researcher as you think you are and she doesn't want you working on her project? What if she got funding from a grant that requires the participants to be citizens, and she's trying to get another student, who actually qualified for it, to join her? There are lots of possibilities.

Is it normal? Academics aren't special. People lie. I lie sometimes. I'm sure you lie sometimes. Lying is as normal in academia as it is anywhere else.

Honestly, the above answers the rest of your question too. You assume you know her situation and motivations when the fact is that you don't. You conclude that she's callous---maybe she is, maybe she isn't---again, sometimes you're going to run into a callous person, might even get (un)lucky and stumble upon a sociopath, that's just the risk you run when interacting with people. Nothing special about academia there either.