LMAO! You're friend is a funny ass nigga man. The dealer is not only dumb as hell for dealing with your friend but even dumber for believing that you're the one that actually owes him the money and he doesn't even know you. HA! This sounds like a bad joke or something man, it makes no sense.
If I were you with only an inside perspective. I would be worried as shit man. HA! But sense I have no pressure and I can properly analyze the situation with a clear mind... Its obvious that nothing is going to happen. For that little bit of money, and the dumbass' who are involved.
But then again, it is the dumbest people in this world that prove to be the most unpredictable.
The only thing to do now man is REALLY take charge of the situation. The dealer sounds like he doesn't really know what the fuck he is doing so I think the most efficient way to handle this situation is to stick your chest out.
Even if you have to bluff it. The dealer isn't about it so you need to show him who is. He feels in the position of power right now, tossing threats and making demands. Flip the script on him and do the same thing. I would tell him something along the lines of:
"Aight look slim... I don't know who the fuck you are, but your lame ass threats are getting tired real fast. I've been trying to be patient with you for a while now but I'm getting sick and tired of you hitting up my phone like some thirsty ass female. I got enough problems to deal with. You know who owes you money, and what ever ya'll got going on has nothing to do with me. If after this message you still feel the need to carry out any of the threats you've been giving me then so be it, I'm not hiding, I'm not scared... I'll be waiting. Otherwise, I've got nothing else to say to you and I most CERTAINLY have got nothing for you brah."
Warning: This will only work if you make this believable. Otherwise, if he calls your bluff then you can have some real issues.
Honestly, man... this situation doesn't sound too serious. But nigga's have gotten killed for less money for stupider shit. Don't ever underestimate the stupidity of fake ass thugs.
My guess is, you'll call HIS bluff and he will back the fuck down. Like someone mentioned earlier, if he was going to do something, and he was about all that shit he was talking, you woudn't have needed to make this thread. He would have handled it. But since your friend nor him seems to want to do anything about this situation man, its up to you, to be the man in this situation since you're dealing with nothing but females.
tldr: I'm all his threats are bluffs. I agree with what someone said earlier, if he was about it, he would have been about it. Stick your chest out and take charge of the situation, make it known what you don't tolerate or expect to keep dealing with this shit if you don't speak up and handle it like a man should.