Of course it does, but really RSF, this is your fault. Sorry to put it so bluntly but it is.
So now it's time to take your medicine and deal.
This could end up with you two together. Why bluff? You have no cards with any kind of ability to win. So just sit there. Be patient. Take care of you, take care of your kids, take care of her from the distance she wants you to keep for now.
Have faith she's going to dump this guy.
Remember, you are the father of her children. She does want her kids and herself to be happy and if she decides the best thing is for all of you to be together, then alls well, right?
Stop looking for ways to get what you want RIGHT NOW. Be patient and stay the course and stop thinking about that other relationship. It's such a bigger deal in your head than it is in reality.
Do you really have any idea how much time they spend together now?