I wouldn't be able to be friends with him any longer. It would be too weird, and, knowing my personality, I'd probably not like him any longer as a friend.
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Ya we barely talk anymore
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If he knew she was your crush he should have talked with you before flirting with her. Assuming he valued your friendship. This kind of thing irritates me, so inconsiderate. But I guess if they are happy it might be worth losing a friend over :(