Lakia, I can see exactly why you behaved as you did, but think you are a bit at fault.
The friend must have been so sad that your DS left the holiday. He may have felt he wasn't a good enough host or that the holiday wasn't up to scratch. And his parents must have been upset. Had they paid for him? They must have made plans based on him being there with their son.
Instead of rushing to collect him, you could have told him that he needed to stay the whole time and make the best of it. By the third night he'd probably have settled and enjoyed the rest of the stay, if he knew there was no easy way out.
Same with the teasing. Allowing the boys to sort it out themselves is painful for us (I have the same fault - helicoptering in) but I've made myself stand back and been amazed how quickly bad situations blow over. Far sooner than if I intervene.
From the other mum's point of view, she's probably beginning to think the friendship is too much effort for little gain: invite a child on holiday with you then have him dominate the mood by being so upset over nothing that the holiday is disrupted, he gets taken home, your own son is upset. Then when school returns, he's hauled into headmaster for talking about it. Seen from her POV - you'd keep your distance, wouldn't you, and encourage other friendships?
I'd apologise to her, with flowers and a short note, saying you'd over reacted.