So, last night I went out with some friends of mine, we were meeting up with my gf and her friends at the bar. As we're walking towards the bar to meet them up, this kid my friend and I know from high school stops us, I thought he was going to say what's up but instead he started talking shit, he started saying how I was openly gay and how I fucked some kid in the ass, which I didn't. I didn't even know people still said shit like that, I don't understand why calling someone gay is such an insult anyway, it's pretty childish imo. I was distracted because I was on the phone, so all I said was "totally, man" and walked away since I had better things to do. I did think about decking him right there but something was telling me not to, so we all just walked away. Mind you this is the type of kid that's an extreme try hard, thinks he's hot shit, and talked smack to everyone throughout high school.

Did I handle this the right way or should I just've decked him so he learned his lesson?