Hasselhoff, the tragic ex-wife of Baywatch star David Hasselhoff, was on a downward spiral of drugs, booze and debt when she apparently shot herself with a handgun.

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Hayley, 32, was “hysterical” after discovering her mom’s body on March 5, according to one of the late actress’ neighbors.

The “Baywatch” actress — who shared daughters Taylor, 34, and Hayley, 32, with Hasselhoff — died by suicide last week. She was 62.