On the show, that is. Michael Ausiello reports:
"And this isn’t some sort of angst-fueled, bi-curious sweeps arc à la Adrianna’s season 2 flirtation with Rumer Willis. We will learn that the straight-acting character in question—let the record show that we’re referring to Matt Lanter’s recovering rebel Liam, Michael Steger’s smart and tenderhearted Navid, or Trevor Donovan’s tennis pro Teddy—is actually gay.
How can I be so sure? Well, for starters, one of the show’s producers is confirming it. 'We want to address the issue in a real and relatable way,' says co-EP Jennie Urman, who says the coming-out plot is but one of several 'great story lines' fans can look forward to in season 3."
Haven't seen the show, but those of you who are familiar should feel free to speculate in the comments.