I think the idea is that fae thought people were staring for some unknown startling reason before noticing that they were simply exhibiting the traditional Amerikkkan pavlovian response of staring at the nearest flag and holding your hat/hand over your heart/saluting when the anthem plays, regardless of context. There's no real consequence other than an awkward moment, usually, unless you're really unlucky and some chud is feeling very patriotic/drunk that day. Fistfights and such may start or escalate from there in the worst situations, but it's not extremely common.