Reality shifted, and not just for the thug and the guy he was beating up. It changed for the rest of the world, including you.
You watch as the two men in the alley kiss each other passionately. Then the thuggish-looking one breaks off the kiss and looks longingly into the effeminate-looking one's eyes and says how much he loves him. You smile, knowing that all was right with the world, but have no idea that your memories have changed yet again due to a wish.
And speaking of the wish ... what did it do? It changed everyone who the thug considered normal (by that, he meant "straight") and made them gay. So now the entire world was made up of mainly two sexual orientations: homosexual or bisexual.
You continue your way to the Rainbow Bar.