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As a general rule it's always smart to avoid going along with it when people are denigrating a colleague. That's poor form, and word gets around. You don't want to be known as someone who would talk that way. There's nothing wrong with what you said.
You showed real character and backbone here, but you are now doubting it because of external reaction and the dunnig-kruger effect, you showed competence here when others didn't. However, this could be a creep testing for loyalty so I would see this as a red flag for this person, and I'd watch them a little more closely in future, not in a paranoid way, just a mental note. Good luck, I love working with people like you!!
I think you responded well, and the same way that I would have. I don't like to engage in gossip, especially at a new place of work. They'll get over the awkward silence.
Rising Star
Thank you. I know it’s the right thing to do. He’ll get over it.