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It's implied that the people of importance and power know. Loris is heir to one of the richest areas of Westeros. The people that know he's gay are other people in the loop and, like that squire dude, other gays with good gaydar. I highly doubt the common people know about his homosexuality. Women everywhere love the guy. If jousting was the big sport of the time, this guy was LeBron.
The way I understood it was that the other "players" in the "Game of Thrones" know, just like they always seem to know everything.
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