I'll just rationalize it as an effect of her drug use.
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Maybe she transformed herself for the role, but more likely the fame and stress of Hollywood took its toll on her. I saw something like that before when Carey Lowell (ADA Jamie Ross on Law & Order) went through a similar transformation from hot to not.
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I've always have had my doubts if Katie Cassidy has had some work done on herself. She looked vastly more different on Supernatural even before Arrow began, so not sure what is going on with her. Maybe it's normal change from growing up, but I don't think that's the case.
Not exactly surprising, but Arrow was just renewed for another season.
Good news for me because this is easily one of my favourite shows right now.