Having just heard this for the very first time, I practically yelled at Jack: "You thought I what??"
"Well, you know how sometimes you'll hold Spot, and then you'll get some of his hairs stuck on your chest? I thought that was your own hair. Your chest pubes", he explained.
"You thought I was capable of growing man-hair on my boobs and you just kept that to yourself?"
Thinking this was funny now, he said, "I would have said something eventually...you know, when we got to be more comfortable with each other. But early on I thought it would hurt your feelings if I asked you to pluck your chest hair. I mean, what if you wanted it there, like you were proud of it? That would have been rude of me to ask."
"How many girls with hairy boobs have you dated?! I mean, this is just ridiculous! When would you have said something? I am embarrassed now that you thought I was all manly and you never said anything!"
"Well, finally I realized that sometimes the hair was there and then it would just disappear, so I figured out that it must have been Spot's. Don't worry, it wasn't THAT long that I thought you were masculine, honey."
"Oh, great. Just great."