Housemate Drama: Gossip and Jealousy in My Shared Flat

I’m squatting with a lady (A) who isn’t related to me. We share one bed but I’ve never had any romantic or sexual intentions. We even cuddled once, but it was innocent. Recently another lady (B) moved in to look after her late sister’s children. A neighbour (Mum C) started gossiping, hinting that A and I are "enjoying" each other. A then told me B has been unfriendly—hissing at her and picking fights. A thinks B is jealous because B used to be close to me and might have feelings for me. I’ve tried to steer the conversation away, but the tension is real and I’m not sure how to smooth things over.

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