I personally have no problem with people offering money for raid loot. Let's be real for a second: raid loot is worth currency. By not selling it (if available) and putting it up for roll, the person who pulled the boots come out at a loss. And it's draconian for others to impose their opinion on what YOU do with your loot.
Your loot is your loot.
That said, I also believe that it is the raid leaders prerogative to set whatever rules for the raid that he wants. If you don't like those rules, just leave... or get blacklisted, if you don't care.
Past that point, IMO, you were in the wrong. It was fine up until the point where your raid leader told him that it was against his rules. After that had been said, you were doing nothing but just egging him on and being unnecessarily antagonistic. If I were there, and your account is accurate, I probably would have reported you for harassment, because that's exactly what you were doing.