Okay, just caught my friend , In My Bed!?

Okay, just caught my friend masturbating, In My Bed! Well it was last night, he was sleeping over and we were in my room, I was sleeping on the hammock, IDK why I have a hammock in my room but I do, anyways I was on the hammock and I herd him making noises, so I said "______, what are you doing" and he said "masturbating idiot" i said in my bed" he said "fine, then he stoped, he layed on the floor where I cloud see him and started it again, he asked me to join him and I said no, but then he threatened to tell everyone one I was gay (he knows) if i didn't, so I joined him, and it just got really gross, what should I do, i'll tell ya one thing, he is never sleeping over again.