Loki is just your neighborhood in the closet cross dresser. He would never wear his feminine clothes outside of his house. He's just a normal guy at school. So how did Nick McLean see him in His Panties?
Loki struggled with being a short, feminine guy almost his whole life but, one day, his sister invites him to play dress up with her. The dresses fall gracefully, almost magically unto his small frame. He tried on dress after dress to try to fill his unquenchable thirst for looking pretty. His sister thinks nothing of it and helps him into each flowing, elaborate article. Afterwards, he asked if he could wear them to school.
His sister told him no, dresses are for girls.
Years later, Loki had mastered the art of stealing dresses and, his favourite, panties from his sister. He hides it from the world though. The words his sister told him pound into his eardrums making him ashamed of the way he dresses. He starts to cross dress in the safety of his room but, one day, decides to where his panties everywhere.
I mean, it's not like anyone will see them right?