Am I in the wrong here?

Yes, you were wrong. Damaging property is not an appropriate response to someone lying to you. Yes, he was wrong, but the problem could have been resolved in a way that was not so destructive. Maybe you could have talked it over and worked something out. But now, the damage is done, not only to your friend's property, but to the friendship as well. Now, you will have to pay him back for the damage you did. And he will probably never forgive you. I wouldn't.