So I'm not sure how to approach the situation. I've since backed off because I don't want to be the other girl. And I don't want to be involved with someone who's not even trustworthy. She mentioned to someone else that she's really falling for him. We all met each other at the same time, and she's a really nice person. I feel torn because I feel like she SHOULD know that he's not faithful (if he's hitting on me when we're all in the same circle, I'm SURE he's hitting on other girls, too).
I'm choosing not to say anything, but I'm feeling guilty because if I were her, I'd want to know. I've been cheated on before by someone I really cared about, and I was devastated for a really long time. And it bothered me that my ex's roommate's knew he was seeing someone else (even though I understand about loyalty, it still made be feel dumb). Am I right to keep quiet? I feel like I don't know the status of their relationship anyway.
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It's a hard position to be in. I have been in ones where I knew one was being unfaithful, not with me, but could not say anything. Sometimes it is because it would ruin the friendships, other times it was because I would not be believed because the one being cheated on was in too deep to see the other for who they really were. If it was me being cheated then I would want to know but at the same time I don't expect anyone to tell me because of the potential backlash.
In your case I would let it go. She deserves to know but she might think you want him for yourself and it would cause so much drama. He would probably tell her that you hit on him and he turned you down and that is why you are telling her that. That is the way those guys usually are.