Well, it is not Assur for a women to look at a man in his bathing suit. It is not proper though for her to be looking and for a man to be in front of her in such a state. The only tzniyus issue for a man is the makom ervah. If one is wearing something tight over the makom ervah, then there is for sure an issue for both parties. If it is baggy, it is not an issue but it is just not proper. It is like he is not properly clothed.
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