Fuyumi my dear, I was not hitting on Milkshake, he was being rather over-friendly and I was trying to be nice and not offend him.

How can I put this into perspective..let's say a woman is in a bar, and she's being pestered by a man who's a little drunk. So she'll try to fend off his advances without causing offense, because drunk people can get aggressive.

I was using the same sort of technique there, I have no wish to offend any of our citizens. Flatly turning down the advances of a member of the opposite sex could be construed as my being homophobic, which I am not.
During events like that, there will always be people hanging around looking for scandal and gossip to tell to the newspapers, sadly. So I do have to try and deal with awkward situations tactfully.
Because I don't want unpleasant rumours about me being spread by the tabloids ._. what went on between Milkshake and myself was just some amusing banter, we were both well aware that it was just a bit of fun.