You shouldn't insult someone by calling them gay.
John is playing video games with some friends at a party and repeatedly loses to his friend Jacob.
John wants to jokingly make fun of his friend.
John loudly exclaims that Jacob plays really cheaply and is a cheater.
John loudly exclaims that Jacob plays like some loser faggot.
One of John's friends laughs in agreement at John's antics.
One of John's friends is a deeply closeted gay person and is anxious and offended.