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Falkner knew as soon as he hit puberty that he was gay. He liked men and men only. He was a homosexual, and he would deal with whatever discrimination came with that.
When he and Morty first entered their talking stage, he simply assumed that the blonde was the same way. He didn't see much of another option. It's not like Morty ever spoke of having an interest in girls.
"I'm glad your lead-up trainers don't seem to mind you being a homosexual" Falkner commented nonchalantly over dinner one evening while he was visiting the other Gym Leader. "I remember being really nervous before telling mine"
"I'm not gay" Morty replied. Falkner raised an eyebrow. Morty didn't understand Falkner's skepticism. "What?"
"How are you not gay?"
"I mean, I don't only like guys"
"So, you're... Bisexual?" Falkner asked, confused. Morty frowned.
"Why do I have to put a label on it?"
"You don't" Falkner assured. "I'm sorry. I was just confused" he apologized sincerely. "You don't have to label it if you don't want to"
"Does that... Make you uncomfortable?"
"No" Falkner told him honestly. "I mean, I don't really get it, since labels have been so helpful to me, but it's your life and it doesn't bother me, I promise"
"Okay..."
"I love you"
"I love you too"