Testicles are located outside of the body because the process to create ~them~ sperm requires a temperature slightly below normal body temp. Muscles can tighten or loosen to pull the scrotum taught or loose, which in turn raises the testicles and holds them close to the body, keeping them warmer, or lowering them away from the body to cool.
During vigorous activity, including sex, testicles tend to retract and hold close so they *don’t* bounce around too much. However, vigorous activity also tends to raise your body temperature, which is dangerous to the sperm so the testicles have to lower to stay cool.
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