I think your handled the problem poorly, but so did the GM. I personally am one of the people who believe that a GM should never directly get involved with players, especially not on a personally level such as that, unless they are exploiting a bug, using third party tools that give you an advantage (Which you are), or have attained an item that is normally not available to players (Which it also seems like you have, although you didn't know that GMs can see everything you have in your inventory if they so wish). If it was me, and you blatantly lied about something like that, I would have just banned you, no warning.
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