Hal is fearful of men who are friendly toward him, convinced that they are all homosexuals attempting to seduce him. If Hal is unconsciously anxious because he is sexually attracted to men, we might conclude that Hal is using the defense mechanism that Freud called:

projection

Explanation:

Projection: In psychology, the term "projection" is described as one of the different defense mechanisms that are being proposed by Sigmund Freud. It is referred to as a defense mechanism that an individual tends to employ subconsciously to cope or manage with difficult emotions or feelings. However, it also involves an individual projecting his or her undesirable emotions or feelings on someone else instead of dealing or admitting it with unwanted feelings.

In the question above, the given statement represents that Hal is using projection.