Smith, who is understood to be closely connected to Oliver at the Demons, was provisionally suspended on Thursday after a drug test conducted after Melbourne's Round 23 match against Hawthorn returned a positive result for cocaine.
Now, according to a report authored by veteran Herald Sun journalist Mark Robinson on Friday evening, Smith is understood to have been with Oliver on the night the prolific midfielder suffered a reported seizure that landed him in the hospital.
Robinson labelled Oliver and Smith 'great mates' and proceeded to note that Oliver was not tested for an illicit substance upon his hospital admittance.
Oliver's disturbed start to the off-season, followed by the revelation of the concerning news regarding Smith, have caused the Demons to draw the public's ire.
In his report, Robinson also revealed Melbourne's club leaders, who have taken their official off-season leave period, have been notified that they will undergo 'urgent talks' about the club's apparent cultural issues upon their return to Demons headquarters for the start of the 2024 pre-season.
As the AFL continues to closely examine Melbourne's situation, the Demons await Smith's suspension duration; expected to be around three months.