The country singer, 55, sent the rumour mill into overdrive when he posted a picture of Miley on Instagram and said that he was “so happy” for his daughter.
The 24-year-old can be seen smiling for the cameras while wearing a white dress.
Billy Ray captioned the image: “I'm so happy...you are happy @mileycyrus.”
Fans of the former Hannah Montana star started “freaking out” with one writing: “IM SO CONFUSED, WHATS GOING ON.”
Another commented: “Wait what? Omg did she get married to Liam omg if so CONGRATULATIONS TO @mileycyrus and @liamhemsworth.”
Others got annoyed with a lack of explanation with one posting: “II'm so mad. You can't just start all the drama and leave us hanging..”
Some eagle-eyed fans were quick to point out that the image was from a photoshoot in the Himalayas with one commenting: “If you try to pay attention to the pic.. You can see Himalayas in the background... That's from her photoshoot.”
Another wrote: “Liam is in Malibu alone! Miley is in Himalayas lol probably for a photoshoot or music video?”
Others chastised Billy Ray for teasing them with one writing: “Billy Ray DON'T play with our FEELINGS.”
Another commented: “THAT WAS A VERY, VERY MEAN TRICK, billy ray cyrus!!!!!!!!!!”
Miley and Hemsworth first met in 2009 on the set of their film The Last Song.
They got engaged in 2012 before splitting in 2013. They are believed to have rekindled their romance in January last year.