He can't help but smile when Ned says that, because he likes hearing it, likes the idea that he could make Ned happy, really happy, happy enough to do reckless things -- although maybe he should feel guilty that those reckless things have gotten Ned into trouble. "You make me happy, too. I know that probably sounds pretty silly coming from me, because I'm usually so... well... people assume I'm happy a lot of the time. Because I'm so talkative, or maybe just because I'm so weird."

He knows he doesn't need to say that that assumption is false, knows that Ned has recognized that, in actuality, he's a pretty conflicted person, but he feels the need to explain himself further. "But you make me happy in a different way. Not just the cheerful, jokey way I am most of the time. I mean, it's easy enough to be like that. Anyone can do it if they try hard enough. It's a different kind of happy. The kind of happy I'm not used to. I'm sorry if that sounds stupid."