She, being a girl, and being able to have sex with any AFC she wants just by mentioning it, definitely took that as a rejection. She feels like you probably don't like her, probably put her in the friend zone or something. Guys get this all the time, when the AFCs ask or sex and are turned down. Except it's 100x worse for her, because she's a girl, so is unused to that sort of rejection, or probably any rejection. It hit her hard.
I can't think of any way to recover from that but to wait it out, maybe a week from now, invite her out for something fun and specific, like minigolf.
As far as SHOULD you have had sex with her that night, I would have. But that's still a question only you can answer. If you have some moral conviction about not starting a relationship off with sex, then that's your view, and any girl not willing to respect your views on relationships isn't worth your time anyways. You didn't do anything
wrong.
Good luck on hearing from her, man!
