To me, in general, that seems wickedness of gambling between friends on a P2P because such friends are not worthy to be trusted considering the sentiments in playing to win.
I would say that is a daylight extortions amongst each others.
Just go with the flow. Later on, I'm sure both of your friends will soon make peace with each other.
It's normal to see P2P gambling within the circle of friends. It also happened here in our place in several games like, card games (Lucky 9, Pusoy), basketball games (local games, NBA, FIBA, actual basketball game between us), billiards (per table, poker card games, straight, 9ball, 8ball) and other games.
To the point that will exchange fist because of mocking with each other, well that's a different story and you guys need to step in.