I'm glad this thread got bumped because that is one great write up of a crazy situation.
The closest I had was one night when a friend and I were going through an alley in the city. These two guys came out of nowhere and started talking to us about the bands we had on our shirts and my friends mohawk, one of them used to be in to punk and just kept talking to us. They both had spray paint on their faces from chroming and the guy started ranting out the police and how he'd just gotten released from prison on an attempted murder charged because he attacked a bus driver with a hatchet and his friend had scared off the witness or something. Sounded like a bullshit story but he lifts up his shirt and he has a hatchet stuff down his pants.
We were just trying to leave the whole time without setting them off then his friend starts yelling that we stole his bag and jumping around and getting all mad at us, we were getting ready to run but the other guy calms him down and says how we were cool and the bag was just behind him the whole time and we just left as soon as possible back the way we came.