You have to keep in mind that he was in a gym and not on the streets. Being surrounded in a gym is not the same as being surrounded in the streets. If they really wanted to test Ironbear's skills then they could have skipped all of the intimidation crap and simply asked him if he wanted to engage in a friendly sparring match instead of calling someone out. If they were going to do something stupid then the ring isn't going to stop them from doing it.It's a tough situation to be in, especially if what you say is true that they did indeed surround you and press-gang you into the fight. I probably would have done the same in your shoes as the chances of me getting beat up by a single person in a ring is a lot less than being beat up by 4-5 people surrounding me.
By entering the ring he is agreeing to engage in combat with the the person in the ring. For me personally one of my first thoughts when I read the situation was that Ironbear was being sized up and that now they have an idea of how hard he can hit along with his capabilities.
I think they would have let Ironbear alone had he not let them hype his head up. I think things would have gone differently had he only responded in a way that would suggest that he's not as good as he appears to be. It wouldn't hurt Ironbear's reputation or ability if these guys walked away thinking that he couldn't fight.
This is how I am as a person. If someone really wants to spar with me then the best way to get me to spar is to ask for a friendly sparring match and not call me names or taunt me. I will instantly assume that a person is up to no good if they feel the need to pressure me and call me names just so I can spar with them. Saying that I'm a wuss or afraid is a deal breaker for me. It may be arrogant of me, but in my mind sparring with me is a privilege for the other person and it's an equal privilege for me to spar with someone else. Sparring is something done with great respect between the 2 fighter so calling me a wuss is just not a good start.
Hopefully he'll have enough brains to not tell his Sifu and make it a personal goal not to fight outside of the school, or martial arts competitions where he represents his school. The fact that he sparred is not the issue that's going to make his Sifu angry. It's why he agreed to sparring which will make his Sifu angry and possibly toss him out.Now to a very important question, will you tell your sifu what happend?