Misunderstandings

Ever find yourself in a sticky situation whereby you're standing with a group of people and you make a comment directed at someone but another individual in close vicinity over-hears it and mistakenly assumes that it was intended for him or her?
Or even worse, ever discovered that it would be rather difficult if not impossible to clear that misunderstanding because of one reason if not another?
And as the icing on the cake, ever wondered if the misunderstanding would become reason enough for you to perceive a substantial amount of threat from the misunderstander?

Well, I found myself in a situation that could be quite described by.... well, the description of the not-so-hypothetical state-of-affairs as given above.

Roughly two days ago, I happened to meet up with some friends at a location towards the south of Delhi as one, whom I shall call DJ, was scheduled to return to college the next day. As it would happen, I met with DJ and Medha in the afore-not-mentioned location (top secret as it was) and having spent some time in one Cafe Coffee Day (where we did not order anything) we decided to drop in at DJ's cousin's house in the neighbourhood outside of which I would have the unique opportunity of parking my car, that I had left only 15 minutes ago in the paid-parking-lot of the complex; and win a meet and greet with her cousin's dog that she loved so.
And so I paid the paid-parking-lot-attendant for hosting my car for a period of 15 minutes (which I wasn't too upset about since I paid him with a very tattered 10-rupee-note) and we departed towards the house. As DJ insisted on having a go at driving my car (which in reality is my mother's since I don't get a car of my own for a 2 month vacation) and, taking a lengthy detour so that she could drive a reasonable amount, she got us safe and sound at our destination.

After an initial meet and greet with her cousin and family, she introduced us to the fine Dalmatian dog, named Shadow. Intriguingly, the dog took an instant liking to Medha but wasn't quite so friendly towards me. Having completed one round of cordial conversation, we slipped into another on dogs and began to share our own experiences of raising dogs.
Having shared my anecdote of Dalmatian-for-a-week, the spotlight fell on Medha who confessed (proudly) of owning a fine German Shepard.
In cognition of my dislike for German Shepards and other massive dogs alike, I expressed my disapproval of possessing dogs that are a threat to society and promptly turned towards Medha and, in a rejecting tone, uttered "Bad! Bad! Bad!"

Meanwhile, Shadow had been slinking around the room, quite pointlessly in fact, and had pretty much ignored or failed to comprehend our entire conversation, interesting though it should have been to him. This did not, however, stop him from overhearing my last comment to Medha, which he quite obviously considered a comment directed at him and rebutted with a growl and snarl, baring his full teeth at me.
Needless to say, I was astounded and felt a wee bit threatened, wondering how I could resolve his misconception. To no avail.