Among binary asteroids, (35107) 1991VH stands out as unique given the likely chaotic rotation within its secondary component. The source of this excited dynamical state is unknown. In this work, we demonstrate that a past close encounter with Earth could have provided the necessary perturbation to allow the natural internal dynamics, characterized by spin–orbit coupling, to evolve the system into its current dynamical state. In this hypothesis, the secondary of 1991VH was previously in a classical 1:1 spin–orbit resonance with an orbit period likely between 28 and 35 hr before being perturbed by an Earth encounter within ∼80,000 km. We find that if the energy dissipation within the secondary is relatively inefficient, this excited dynamical state could persist to today and produce the observed ground-based measurements. Coupled with the orbital history of 1991VH, we can then place a constraint on the tidal dissipation parameters of the secondary.