In a statement provided to TMZ from Tay's family, she tells TMZ, "I want to make it clear that my brother and I are safe and alive, but I’m completely heartbroken, and struggling to even find the right words to say. It’s been a very traumatizing 24 hours. All day yesterday, I was bombarded with endless heartbreaking and tearful phone calls from loved ones all while trying to sort out this mess."

She also says, "My Instagram account was compromised by a 3rd party and used to spread jarring misinformation and rumors regarding me, to the point that even my name was wrong. My legal name is Tay Tian, not "Claire Hope"."

Tay thanks Meta for helping to get her Instagram account back, and the phony death statement has been removed.

What's still unclear is why it took Tay 24 hours to get word out she's alive, especially because she says she was aware her account was hacked ... and was getting phone calls about her "death."

On Wednesday, TMZ contacted police in the Vancouver area as well as family members who were totally in the dark, and knew nothing of her passing. Now we know why.

Tay's fake death was announced Wednesday morning on her Instagram ... the statement said her "sudden and tragic passing" is an "unbearable loss," adding her family is in complete shock.

The statement also claimed her brother died, "Her brother's passing adds an even more unimaginable depth to our grief."

Lil Tay got her fame as the "World's Youngest Flexer" that rapped and showed off a lavish lifestyle across social media. She's garnered 3.2 million followers on Instagram, but hadn't posted on the account since 2018.

You'll recall, Tay was caught in the middle of a nasty custody battle between her parents, Angela Tian and Christopher Hope -- one we were told had been going on in court since 2018, around the same time the influencer went radio silent online.