What does "we're good" mean?

I'm either having a language barrier or the person I've been chatting with is gaslighting... In a nutshell, I know "I'm good" = "I don't need anything, thanks." But when I asked someone who had a tiff with me to meet up for coffee to change the energy (after he behaved very rudely), he answered, "No need. We're good." I've no idea what that means... Good how? Good to whom? It's odd... and rude. I'm not sure how to respond to this sort of thing.

What does "we're good" mean?
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