"… espionage?" Peter repeated the last of Bruno's words in a weakly, shaking voice.
Judging by how he tried to dance around his lack of knowledge to remain in the conversation with Bruno, he wasn't an idiot. With that in mind, he likely knew that his position in the situation was quickly deteriorating…
But with the properly formulated accusation thrown right into his face, he finally found out just where his fucking around brought him to.
"But.. I'm a human! How could I ever be a spy for demons?!"
After everything that Peter said, there was no room for him to backtrack or to revert his claims. Doing so, while saving him from the suspicion of siding with the demons would instantly put all of the claims he made before into question, landing him with all the other crimes that Bruno listed before dropping the fattest one of them all.
And so, unable to revert the course of his actions, he could only double down on what he already said.