Did I hurt my friend by hooking up with someone else in front of him?

I've been hurt so many times in the past by guys who ditched me for other guys. That's why I'm kind of surprised to say that it looks like I've done the same to my friend. "Terrell" and I met for drinks over the weekend. We've only been friends, though we have done some occasional flirting. He's not very good looking and doesn't really seem that attracted to me, so at the bar, we met up with this guy "Ken", who I've played with before. Ken is really hot, and I made it clear to him that I was interested in him by touching his arm, putting my arm around him and doing some heavy flirting. He flirted right back to me, and eventually invited me outside for a smoke, during which he asked if he could come over to my place that night, and I said yes and kissed him right on his lips. He's a sexy black guy with big lips, so just from kissing him I got an instant hard-on. So anyway, when we went back inside, Ken and I were arm and arm for the rest of the night, and I could tell Terrell was jealous. I was Terrell's ride, so I gave him a ride back home, during which he jokingly was telling me our "marriage" was over and he was gonna take the house, etc. I didn't think too much of it, but afterwards, he texted me "Am I ugly Brian?", to which I replied of course not. He told me guys are not interested in him, etc etc. Again, I didn't think too much of it, but that night on facebook, he posted that his "heart was broken again," which kind of upset me because I don't want to hurt anyone. I've been hurt SO MANY TIMES in the past. And the next day, he texted me something to the effect of, "You and Ken aren't going to be sleeping together now? Because that would be really weird." I'm not sure why that would be "weird" -- maybe b/c he's black and I'm white and he's also 20 years older than me (but doesn't look it) -- but I lied and told him we're not sleeping together and just watched a movie that night. Did I do anything wrong? I don't wanna hurt Terrell, but at the same time, I don't see anything wrong with me pursuing the hottest available guy I meet. I really like Ken. He seems really cool and we have a lot of the same interests. We totally clicked sexually and hung out twice over the weekend. He said he's my "boy", which is close to "boyfriend" I guess lol. What do you guys think?