Ran across this this story, told by Bunnie Diehl, thanks to a reference from Olasky at World Magazine blog:

I was at a party on Saturday night where a pretty well-known liberal internet columnist kept telling everyone that the Bush administration was planning to discredit someone by revealing that person's sexual orientation.

The thing was that it was HE -- and not the Bush administration -- who was spreading the rumor -- which has since begun to trickle out from various gossip sites and pundits.

As he told various partygoers, he was making up the part about the Bush administration. He thought it would be better if HE spread the rumour, but blamed the Bush administration.

I think it's one of the most evil things I've ever heard.

Well, whoever that was (fess up, Bunnie!?), they have indeed been making waves: the trick has worked quite nicely. The story has since appeared on the Drudge Report, been highlighted by the DNC, and -- of course -- been all over the gay press:

The White House has disavowed a report that an anonymous White House staff member attempted to disparage an ABC News correspondent who broadcast a critical story about U.S. troop morale in Iraq by disclosing that the correspondent is openly gay and a Canadian citizen.

Presidential press secretary Scott McClellan said the White House had no knowledge of who — if anyone — allegedly leaked information last week to online gossip columnist Matt Drudge that veteran ABC News correspondent Jeffrey Kofman is gay.

Reminds me of the recent Claremont hate crime hoax in which a liberal professor vandalized her own car and blamed it on conservatives.