Sorry man... you did what you should have. Your friend is clearly psychotic, my guess would be meth based on my experiences with psychotic friends on meth. My best and oldest friend (since second grade and we're 35 now) got long-term strung out on meth and was eventually psychotic and occasionally suicidal. He never went THIS far with me, but he would ask me for money all the time after telling me about the people in his ceiling recording his keystrokes and stuff, and I'd refuse and he'd cuss me out and tell me we weren't friends anymore. A few times he would threaten to kill himself, and he lived 1000 miles away from me and 500 miles away from his parents... we'd call the cops, they'd do a welfare check, and their appearance would feed into his paranoia. One time he even threatened to shoot up a school. He never did any of that stuff, it would for attention. The reality was, he was incredibly lonely and isolated because he believed all this crazy shit was happening and no one would believe him (because it was obviously psychosis). Over time he started lashing out in any way he could to try to get someone to help, but then he'd refuse the help because he was paranoid and addicted to meth. Eventually he was convinced his parents and brother had organized some huge world-wide conspiracy to discredit and kill him. His parents were paying for his rent and basically everything because they didn't want him to be homeless, but it ALL went to meth, he'd call begging me to order him food sometimes, which I sometimes did. He'd get evicted from every place after a couple of months.
Do NOT give this person money, it will be immediately wasted and will only enable them. It's sad and scary, but people like this need to help themselves. Something needs to force them to detox and then hopefully they decide to get help. For my friend, it took getting shot (in the arm). He went to the hospital and they detoxed him and he decided to go move back with his parents and go to 3 months of rehab. He's got a month left and he's doing SO much better, he has some PTSD from it all and he's not quite right yet, he still believes some of the stuff actually happened, but then, some of it could be true, I don't know. We've talked extendedly a few times and I'm visiting my parents, who live in the same town as him/his parents, in a couple of weeks and we're gonna get together.
Point is, there's really nothing you can do when someone is so far gone.