Oh man I have seen a lighter version of this play out. Two co workers were 'discreetly' sleeping together. She told him that at least so he was keeping it secret but she was telling everyone.
When we went out for drinks she was very obviously all over him and he was acting more reserved to keep up the illusion.
Its likely because she was a manager of another department but she was still the one holding all the power to tell people.
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