I'm extremely frugal, so I would suggest that you do one of the following: either use a twin bed instead of what you have currently, or get a loft twin bed so you have all the room under the bed. You can get one ready made: Google adult loft twin bed. Of course, you'll have to do your research and measurements to be sure you have a loft bed that is safe, secure, and fits your space. Take full advantage of your vertical space - (GO UP!!!). When we have very little space, an excellent example to look at is a boat. Boats are designed to look at every nook and cranny. They are specially designed for space optimization.

Maybe this?

If you really want the queen-sized bed, this could still work; it would just be considerably tighter:

To my eyes, the spaces look much better proportioned with the twin, but you know your needs.

For a balance of privacy and openness, you could consider an adjustable divider. Some attractive ones use floor-to-ceiling wood vanes that turn to open and close like vertical blinds (but sturdier). You could open them during the day to let light through when the sleeping area is not in use, then close them for privacy at night. A search for "room divider" shows many.

Here is a layout for a studio apartment and the bed area will use drapery to create a sleeping alcove. You need more light for the living area and less natural light for the sleeping area.

That’s a really fresh idea! It definitely frees up more space for parties :)