UPDATE!!
OK, so apparently Jane arranged to meet up with Karen to discuss the situation. I have not spoken with Karen, but Jane called me right after and told me what happened. I try to keep in mind that this is Jane's version. She was a little emotional, so I don't know how reliable it is. Blow by blow according to Jane.
*Jane just came out told Karen that over the last few months that she had been feeling confused about her feelings for Karen. (She is very blunt, so this is probably accurate)
*Karen was confused
*Jane went on to say that her feelings of friendship had started to become romantic
*Karen was taken aback and even more confused
*Jane said that she didn't mean for it to happen, but it developed so slowly that she didn't realize what happened until she blew up over the last idiot Karen dated. Jane then goes on to say that she understands if Karen wants to keep her distance.
*Karen says she needs time to think and leaves (politely and kindly, but she still left)
*Jane calls me and tells me what happens, is shaken, but glad it's out there
*I tell her she did the right thing and then came here to tell ya'll
So, it's up in the air right now. I'm proud of Karen for taking it like a grown woman and proud of Jane for finally acting like one. I'm so thankful it didn't get ugly. Awkward, but not ugly! I really want all of us to be the Three Musketeers again, but I doubt that will happen. The dynamics have changed permanently.