The narrator has just entered a scene where their friend seems to be aware of a past event involving some kind of romantic or physical interaction that occurred the previous night. The friend casually tosses the narrator a shirt, suggesting familiarity with what transpired. Although there was some obvious intimacy, the narrator is relieved that something more incriminating, like a bra, wasn't discovered.
The narrator acknowledges that things escalated after their friends, including Mrs. W., departed from the room the previous evening. This admission hints at a playful yet possibly complicated relationship dynamic, where there were feelings of both excitement and embarrassment about the situation that unfolded in the den.