Actually, they're obsessed each other. But MC forgives Haeyoung if Haeyoung feels the same pain as him, and because he thought Haeyoung had suffered enough (like getting hallucinations and self-harming), he forgives him. In the side story, Haewon stated that he's happy because Haeyoung treats him nicely now.
You're not reading the novel and just reading some spoilers, guess you're the one who is assuming right. The entire main story is not happy, it's so messed up in an interesting way for me. But the side story is kind of bittersweet. It's kind of realistic if Haewon still gets terror from his traumas, but traumatized people can also be happy. Like I said before, Haewon states to himself that he's so happy right now because Haeyoung treats him nicely. My definition of a happy ending is where the main characters involved in the story are happy in the end (and that's actually the general definition). Maybe your definition of a happy ending is different, it's okay, it's your opinion.

after reading some spoilers, I'm not gonna continue reading this shit. Not good with my mental health HAHAHAHAHA I thought the mc will escape and live without haeyoung but that mf always find him and repeat the cycle like beat him up and rape him and again and again. This is so draining asf