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He probably thought that Richard didn't like his name. And perhaps Bugs spied on Richard urinating and thought Richard might have a bigger penis than him. And this could have sparked paranoid delusions that Perhaps Sal knew also and was eager to ride Richards rod over his lol.

I think Bug is really sceptical towards strangers.
I think he is good in reading people and maybe he kinda felt that Richard is someone who will be getting a lot of attention. Maybe he also felt that Sal felt attracted to him?
So he got jealous.

Bugs was just a tosser.