That's not a hug! That's eh... a friendly assertion of dominance! Yeah you can clearly see Judy is all like "I'm claiming this fox! Now hug me back or I'll suplex you!"Nick is just paralyzed, fearing that she may follow through on her threat. He contemplates all his life decisions that brought him to this very moment and realizes there is no escape of this other than submit to the ferocious rabbit and let her have her ways with him.