"She's lying," the storekeeper shouted at the top of his voice when he saw that Peggy wanted to wash her hands off the whole thing. Maybe there was still hope for him with what these people were saying.
If she had not approached him and promised him heaven and earth, wouldn't he be sitting at his corner minding his business like before? After implicating him, she wants to escape punishment by dumping the whole blame on him.
Now he had seen that this woman was a snake in green grass. He shouldn't have trusted her.
"How can you say I'm lying?" Peggy shouted back, looking surprised. Did I know you before if you didn't come to me first?"
Those were his lines for Pete's sake. He was the one that didn't know Peggy but she came to him first. Why was she turning everything around, making him look like the one to blame.
"You said I threatened you, right? What did I threaten you with?" The storekeeper fired back.