This song is about a girl who breaks up with a guys by telling him they should be "Friends." This is not what he wants to hear, and to his ears, and the resulting heartbreak makes him think of the word "Friend" as dirty and cruel - similar to many vulgar 4-letter words in the English language.
The lyrics are a play on words, the four letter word they refer to is "iend," and is the only part of the word that the singer hears, which sounds like "end."
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