...are sitting on the kitchen floor...

...in that girl's apartment. You know who. Harry's smoking a cigarette, Mark is talking (more or less to himself) and John just returned from the bathroom where did a line of coke. Maybe. Nobody can tell - he always acts like he just returned from the bathroom where he went only to do cocaine.
Mark says, "You know, there's hardly a thing I hate, but if there is anything I hate more than faggots, it's homophobics" - Harry exhales looking at Mark. He's puzzeld. "Huh?" -- John asks: "Are you actually listening to what you're saying?" A question which - now that it was asked - seems to prove the coke theory wrong, since he seems to listen. Harry says, "Well, if I was gay, would you hate yourself more than me?" -- Mark: "You're gay? Dude, I didn't know." -- John: "Never ever heard of the concept of hypothesis?" -- "Man, that sounds horrible. Hope it's not infectious."