Jon realized his wish had been granted. He knew that his wish was supposed to be twisted, but because he stated the second part as a second wish, the wish to forget had been twisted.
As a result, Jon thought that he had made some wish already after the wish to forget and he didn't remember exactly what it was. And to make matters worse, he was starting to notice a few things that didn't seem right to him. The twisted wish was to forget, so he was now forgetting some things and remembering other things that never happened.
"Uh oh," he said and then started at the sound of his voice. He covered his mouth with his hand and whispered to himself, "what did I do?" He then reached down the front of his pants and felt a penis. An actual penis was now growing between his legs. The last thought he had before he blacked out was, "And Karyn thinks wishing her boobs bigger was bad..."