> why is she only like this towards the middle one (her best friend) and not the older dog.
because the middle one is lower ranking and she is wanting to climb the ladder socially.
Also she is resource guarding (you). A separate issue, but one that may instigate her behaviour, she feels she has the right to monopolise you, because she thinks she deserves to be above the middle dog, but really she isn't mature enough for a higher position yet (she's about 18 months yes?).
Unfortunately you may need to reduce her status, no attention at all when the others are about.
My 19 month old has been trying to climb up the ranks by going straight for the top, trying to force the oldest (now 12) into confrontations and succeeding, so I have had to take a firm hand with them both, and anything starts they both get told off, but the youngster the most. I am lucky as none of mine actually go as far as wanting to damage each other, though spats can sound awful.
You need to become very aware of the subtle signs of a challenge and nip it before it gets that far, distraction and firmness.
For example young bitch is starting to stare out the other, or deliberately stand over her, block her path, come to you and not allow the other too, you must then stop this, distract, do some obedience exercises, and then send her away and give the others attention.
A behaviourist may need to be contacted so they can see the situation, but make sure it is Vet refereed.
If the situation has got beyond redemption (I doubt as she is only adolescent and not fully socially mature), then you may have to split them up permanently, especially considering the size difference. I have only ever dealt with bitches of same breed, which makes a difference, because of size, and reactivity/attitudes being the same.