TMZ broke the story ... the former Disney star was arrested Thursday for misdemeanor domestic violence after cops in Ohio responded to a call about a fight in progress between two men.

Matthew Sanders, the alleged victim, tells TMZ ... he's directing and producing a movie called "Up The Score" and wanted Orlando to be part of it, because he considers OB not only a friend but extremely talented.

Orlando's legal issues have been well documented over the years, and Matthew says Orlando had been living at his home in Ohio since November during preproduction for the movie. We're told there were no major issues until Thursday's incident.

Matthew, who told cops Orlando came at him with a broken-off knife blade and a hammer, believes OB is struggling with a mental illness. He thinks Orlando is at times out of touch with reality, and he's bummed he wasn't able to help Orlando make a movie comeback.

Orlando was supposed to have a secondary role in the movie ... a dramedy about a military man who meets someone on social media and leaves his family for this person only to find out they are not who they said they were ... but that's no more.

Matthew tells us Orlando is no longer allowed to live at his house at this point in time and is currently removed from the film.