the way npcs react to you is the social feed thing in miniature

people notice you. they clock you following them. they get annoyed if you stand near their conversation. you can greet or taunt and they respond differently depending on what is going on

that is the same idea as the whole social media layer. everyone is watching everyone and deciding what they think about it. one version is in your phone and the other is on the pavement and they are the same joke