The flashback contribute to the meaning of the story is:
Gatsby reveals he is aware of the stories people tell about him.
What happens in Chapter 4 of "The Great Gatsby"?
At the beginning of Chapter 4, Jay Gatsby picks the narrator Nick up to got to lunch with him. Gatsby starts chatting with Nick and telling him about his life as he is driving. This information is very appreciated because Gatsby is a mystery person.
First, Gatsby reveals he is aware of the stories people tell about him, as we can see in the passage:
"'I don't want you to get a wrong idea of me from all these stories you hear.' So he was aware of the bizarre accusations that flavored conversation in his halls."
Second, Gatsby's story is so poorly told, the details so carelessly included, that Nick can't help but laugh at their absurdity:
And I questioned whether he might not perhaps be a little wicked after all. [...] Â With an effort I managed to restrain my incredulous laughter."
Gatsby does, however, present some proof in the form of a picture and a battle medal. Nick is now very perplexed. Although the proof is right there, in his hands, making at least some of the story seem accurate, it still seems crazily made up.
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