*edited link
"your sleep masturbation is more likely to be a symptom of a sleep disorder or to be a normal variation of sleep behavior"
I once had a friend who would masturbate often in his sleep. He did it at a slumber party once when sharing a sleeping bag with a girl he knew. And another time at a part he stood up in his sleep and started doing it. I've also woken up in the midst of masturbating before, so I don't think it's that uncommon - I just think most people don't discuss it.
If the Kinsey Institute's doctor is right and it's related to a sleeping disorder, you could possibly try over the counter sleeping pills like Excedrin PM. However, it seems as if you're almost more concerned that he called it "gay" than the fact that he did it.
I don't see why it's a big deal that he said it's "gay" since that is, as the posters here have stated, a fairly common slang term that doesn't necessarily mean anything homosexual. If it really bothers you that he said it, I'd just ask him.
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