Am I just blowing the whole thing out of proportion?

I don't think you blew it out of proportion. You know how guys are. Absolutely nuts. =] Just take it cool, play it off as nothing, and continue as if it never happened. Don't even mention it. I'm sure your friend was just joking around and didn't mean to embarrass you or anything. Maybe. =]

Well. If they know you're on this website (HOW by the way did they find out? You must've told them otherwise I don't see how they could ever hunt you down. But anywho) and you just posted this question. Guess what? You've just confirmed to them what you so blatantly denied thus confirming your interest in this guy. So what happens now? He obviously will find out you are in fact in love with him and can go two ways.

Either he:

A) Likes you too and will ask you out

Or

B) Let you know he's just not into you and you'll have to move on

You aren't blowing it out of proportion, you just put yourself in this situation in the first place by letting them know you were on this site. Had you not let them know they probably (99% sure) wouldn't have found out and everything would be just fine. Next time, be careful what you say.