what's this called?

my friend is in a situation that she isn't quite sure what to call - She (19f) is pansexual, she's talking to a someone (21m) who is straight who is talking to another girl (18) is also pansexual while all 3 of them are also talking to other people outside of this situation. All three of them are in a "situationship" where they're sexually intimate and flirt back and forth while also being part of a larger friend group. The other friend is making jokes about her and my friend being "polysexual" that irrates my friend, being the resident blue hair liberal of my city she came to me asking about it. I told her that what this person was talking about was more along the lines of polyamory/an open relationship/no labels while polysexual is a lot more like the label she's already using. I figured I'd come here to see if you guys had anymore insight into what this might be called.