Look. This has been a week. Loki was already in a mood (questing with morons, arguing with goats, making friends with his enemy, stealing souls) and then Fandral showed up and just totally threw his emotions into a panic. His response (after carefully tucking Julia's shade in a SUPER SECRET HIDING PLACE - AKA under his bed) was to attend the festivities in full Loki style. He started off the night having a little too much to drink with his brother-in-arms and now he's schmoozing his overall slimy self with anyone who looks his way.
Do you want to dance with Loki? (If you're embarrassed but ask nicely maybe he'll put up an illusion to look like someone else.) Do you just want to mock him? Maybe you want a little mingle? Or something more? Flattery will get you most places. (Bonus points to anyone who can steal him Tony's crown.)