A coronial inquest began on Monday to examine the final movements and suspected death of Ms Fraser, who was last seen on June 20, 2009.

Her mother, Karen Fraser, was called to give evidence at the Melbourne Coroner's Court.

She said her daughter had been 23 years old and only days away from giving birth when she went missing.

The pregnancy was unplanned and Krystal was nearly five months along before she realised she was expecting.

"She had an Implanon (contraceptive implant) in her arm," Mrs Fraser said.

"We were going to buy the house next door and put her in there so we could help her look after her child."

The Coroners Court was told that Krystal intended to have a DNA test done once the baby was born and wanted to apply for the baby bonus and child support payments.

Mrs Fraser said Krystal didn't know who the father of her child was but, together they had tried to make "a list" of potential candidates.

Krystal was intellectually disabled but lived in a public-housing flat independently, with cleaning and cooking support from her family.

Mrs Fraser said she cautioned her daughter against telling people the identity of the father unless she was very confident that she was right.

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Counsel assisting the Coroner, Fiona Batten, asked Mrs Fraser what she thought had happened to her daughter.

"I thought maybe she told somebody they were the father and they didn't want to be," she said.

"And things got out of control and somebody accidentally hurt her and you know sort of covered it up because they didn't want to get into trouble.

"I just can't imagine anybody hurting somebody so vulnerable - yes she could be a pain in the bum at times. But she didn't have a bad bone in her body she was always doing nice things for everybody. How could somebody do something bad to a pregnant woman?"

Krystal's father also gave evidence and said he believed she had been killed.

Mrs Fraser said her daughter was "addicted" to her mobile phone and to spending money and could not tell who was a genuine friend and who was using her.

"You would see her with her so-called friends and you could see they were just using her," she said.

"They were not nice to her and it just went over her head. She just did not get it. They were being horrible to her and picking on her and taking the mickey out of her.

"I would pull her aside and tell her that they were not very nice and (she would say) 'that's not true mum'."

Mrs Fraser said her daughter was used for buying cigarettes, sex and picking up drugs from Bendigo for them.

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She said her daughter could not drive a car but was very comfortable taking public transport and did so often. She received a disability pension which was paid through a state trustee into her bank account in small amounts three days per week.

Mrs Fraser said Krystal would withdraw the money immediately and would frequently spend her money on cigarettes and beer to give to her friends.

"She never cleaned her place, she never showered very regularly when she moved out," she said.

"It wasn't a priority to her - that's how the doctor explained it. Her priority was her friends."

Ms Batten asked if Krystal had been transporting marijuana from Bendigo to Pyramid Hill on the V-Line train and whether she had been paid for it.

Mrs Fraser said she was not aware of her daughter having any income other than her pension.

"She kept saying to me 'if you hear any rumours about me and drugs - it's not true' and I said 'well honey - where there's smoke there's fire - and if you are doing the wrong thing you will go to jail and I don't do jail visits.

"With that she said 'don't worry mum - if I get caught I'm a nuffer - they will just slap me on the wrist'. So somebody told her that - so I assume that's what she was doing but I don't know if she got paid for it or not."

Mrs Fraser said her daughter never received a formal diagnosis because every time she was about to be diagnosed she went up an age group. There was discussion about whether she had Asperger's but once she turned 18 she refused to get any more cognitive tests done.

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