more, but what if his delivery, tone of voice and body language all said he'd do it if he could (e.g. no smile, stare down, etc)?

When I first read the story I assumed it was friendly banter, but travelcoug is saying it's not. Maybe he's just trying to save face, but if the guy was being a tool I think travelcoug is in his right to say something back. Otherwise, just laugh it off and exchange friendly banter.