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The only reason I gave so much information is because my boss said, "and as I understand it's happened before" upon confronting me, but it HASN'T. So my concern is that the Favorite is spreading rumors and feeding lies to my boss, which is even more terrifying.

How do I "say nothing"? If questioned, isn't it worse to deny it as opposed to just fessing up? I'm going to start applying for colleges soon, is this going to go on my permanent record?