Ok I didn't realize you had known the guy so long but the psychosis could still be the cause of him seeming gay....I saw my friends openly masturbating in front of me....it didn't happen. I also thought they might be evil somehow but it wasn't a fully formed delusion in my case. It also may not be the guy but heavy drug or alcohol use that is the trigger. I think if you wanted to meet for coffee you might be OK but I'd still say not to party with him you know.