How do you counter bad rumors spread about you to people around you?

If it is true, it isn't a rumor. Too bad the secret is out, so the only thing to do is to either ignore comments regarding it or admit to it. In the future, you'll need to be more careful who you share your 'secrets' with.

laugh them off. deny it. spread worse rumors to get it out of your system. you will still have friends, true friends who dont believe them. sure you'll be living a lie, but by the next month or so, it will be blown over.

that happened to me that i was dating this one nerd so i just denyed it and acted like it was not true and people believed me