When George is telling the tenants committee the story of his life, he mentions "the water I had been swimming in was very cold, and when I dropped the towel… there had been… significant shrinkage". This is obviously a reference to "The Hamptons", in which Rachel (then Jerry's girlfriend) walked in on him naked. BUT as you may remember, he hadn't dropped the towel; he took off his swimming trunks! Oops! But then again, I'm sure (owing to the fact that George is a whopping liar) that he just built that story for effect and didn't put any effort into going into true details.