When someone says, "I'm happy that you're happy," they are expressing genuine joy and pleasure in seeing someone else content, satisfied, or delighted. This phrase is often used as a way to show support, encouragement, and goodwill towards the other person's well-being and happiness.
It's an empathetic and positive response to witnessing someone else's joy or happiness. By saying this, the person is acknowledging and valuing the happiness of the other individual, and it can be an expression of care and affection in a relationship or friendship. It indicates that the speaker is happy for the other person's positive emotions and wants them to continue experiencing that happiness.
Overall, it's a way to reinforce the bond between individuals and create a sense of mutual happiness and positive regard.