??? Nothing you said was bad, OP. If you believe you said things you can't take back... then I have to doubt the rest of your story. Perhaps what she said wasn't that terrible? Or perhaps it was, but you allowed her to walk all over you for years?
I don't really get your story. Saying someone is mentally ill might be hurtful, but maybe it's true. Or maybe they thing it's true. They might be factually wrong, but it's not a swear word. You saying "look in the mirror" might actually be entirely true, since she inherited your genes
You got into a heated dispute with your 22 year old. OK. It happens.
What matters is WHY she was upset in the first place - and I notice you're not including that in the list of your concerns, when really it's the crux of the matter.
As another poster has touched on, there are ways to be a shitty parent while paying for after school activities and outings.