Believed to have been born in Jiaxing, Liu was sold by her family as a concubine to the Prime MinisterZhou Daodeng. At the age of thirteen, a scandal led to her expulsion from Zhou's household, and she was sold to a brothel in Suzhou. At seventeen, she had her first major love affair, with the painter Tang Shuda. Already a noted poet and painter herself at this early age, she met Chen Zilong in 1635 and lived with him for about a year, eventually leaving after his family disapproved of their liaison. After leaving Chen, she managed a brothel in Wujiang. An affair with the artist Wang Janming ended when Wang failed to attend an appointment with her at the Rainbow Pavilion. Another affair with Song Yuanwen, a government official, ended when his vacillations over marriage resulted in Liu smashing her lute and storming off in a fit of pique.
Marriage to Qian Qianyi
In 1640 Liu embarked on a campaign to marry the respected scholar Qian Qianyi. Dressed in men's clothing, she accosted Qian and requested his opinion on one of her poems. Qian apparently believed her to be a man, but later in the year he had established her at a specially built hermitage in the grounds of his Suzhou estate, called the "According to Sutra Studio". They married in 1641, whilst on a river cruise; Qian bestowing upon his bride the new name of Hedong. Although he married her as a concubine, Qian treated Liu as his principal wife, and they were married in a formal wedding ceremony. Her affinity for cross-dressing persisted after they were married; she regularly wore men's clothing whilst in public and on occasion made calls on her husband's behalf whilst dressed in his Confucian robes. After the collapse of the Ming Dynasty in 1644, Liu tried to persuade her husband to commit suicide and martyr himself to the fallen Ming. Qian refused, instead choosing to organise the resistance movement against the newly established Qing regime. In 1648, the couple had a daughter together. The last years of her life were difficult for Liu. In 1663, she entered the Buddhistlaity, partly as a response to the destruction of her husband's substantial personal library, the Crimson Cloud-Storied Hall. After Qian's death in 1664, his creditors and enemies attempted to extort money from Liu; their machinations eventually drove her to hang herself.
During her life Liu was a prolific poet, publishing four collections of her work before the age of 22. Her calligraphy was noted for its bold, masculine strokes, using the "wild-grass script" style. Her solo anthologies included Songs from the Mandarin Duck Chamber and Poems Drafted by a Lake, and her poetry was published alongside her husband's in a number of his works.