Fang Shi could look at it in one of two ways.
The first, as there were now three parties, being the target, the assassins, and Di Tou, by refusing to give information to Di Tou, he would offend two of the three factions, whereas if he shared the information, he would only have offended one. If he was going to offend a group, no matter what, naturally, Fang Shi should choose the option that would benefit him and the least likely offended parties.
For this purpose, Di Tou was willing to reveal a bit of his cultivation to cause some pressure to get the situation resolved. Although he wasn't exactly a fan of this method of resolution, as opposed to dealing with bureaucratic nonsense, Di Tou would much rather be a little bit mean, especially as he wasn't going at it with the intention of harm.
Of course, Di Tou would only do so as a last resort.