OK, now that this has worked itself out, what did we learn in school today?
1) Cops can and do lie. It's legal for them to do so. They will tell you a lie (You sold to a CI!) in hopes that you will tell them more. It works. People try to talk their way out of it, but only talk their way in deeper. In all objective honesty, cops lying is a valid investigation 'tactic', even though it sucks to be lied to.
2) Neighbors knowing what you do is big bad juju. Like this douche, they may get it in their vacant little heads that for __________ reason, they should call the cops. Or, they talk about it to their douchebag friends at the bar. You can be greatful for this, you were confronted by the police not a crue of armed hijackers.
3) We also learned that the first person who you thought snitched you out, didn't. You came close to publicly outing someone who didn't deserve it. You held back, and I admire your self restraint. We can all learn that holding back untill all the cards come down is a good thing.
I think your right to move. And get a carbon filtered exhaust set up.