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Friend mistook group hangout invite for a date and is telling people—how do I handle this?

To put it simply, me and my two friends were planning on hanging out together. The two of them are in a relationship and I didn't want to third wheel and wanted to bring one more friend. I wanted to bring a friend that I knew was close with all of us so it won't be award, and decided to asked a guy friend of mine who I knew was close with the other people going. I thought it would be fun since what we were doing was something he seemed to enjoy, and he took the invitation the wrong way. He thought I was asking him out on a date, and I was not. After he sent me a paragraph on how he wasn't into me, I texted him saying, "Trust me, it's not like that. I thought it would be fun for all of us to hang out as a group since I know your close with them. I only look at you as a friend." I assumed he would answer back with a "oh, my bad" or "Oh sorry" but he never texted me back. I just brushed it off and went on with my day. The next day it was overly awkward. Any conversation I made with mutual friends, he didn't even look in my direction. I didn't think it was all that serious, but it seemed to him it was. Recently, a friend of mine overheard two people in our friend group talking about how I asked him out and he rejected me. I'm honestly confused on how they would even know since I thought the miscommunication was just between us. My friend also made it sound like they were saying how the lack of romantic feelings wasn't mutual, and it was one sided with just him not having any feelings. This pissed me off because one, that wasn't true at all and two, because if that was the case I feel very disrespected. It seemed like he was trying to use the situation to make himself feel and look good in front of our friend group. I don't know if I want to say something or ignore it. I'm also still not confident if that was actually what they were saying word for word. Does anyone have any advice? I've never been in a situation like this before.

Friend mistook group hangout invite for a date and is telling people—how do I handle this?
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