@Sgt. Ear Ache man, you're good.
Your first post here hits the nail on the head on how a con works. I tried to explain this a thousand times, but people often like themselves too much to even accept this as a possibility.
Imagine a group of three people; one's a conman, one a buyer and one is a buyer's friend. Conman does a number on the buyer and the buyer believes him and buys, let's say, cable risers. Now, as soon as he gave his trust to the conman, he invested a huge amount of ego - he made a decision based on a con and any rectifying will ask of him to admit this.
Now the friend comes sad to see how the guy got conned and he tries to set him straight.
IMPORTANT: This is where we all make a mistake and expect something that is totally false, and totally contrary to human nature; we expect the conned guy to burst in laughter, to be happy, to thank his friend for correcting him and then he or the two of them will pay a visit to the conman and say fuck you buddy!!
But no!! Never! Conned guy has to admit directly or implicitly to being an idiot. He has to admit that even as a grown person he bought into such crap, he fell for the oldest, he got suckered with something as simple as fairy tales. He usually takes his friend's warning as demeaning, as an insult, he usually thinks "it is you who is trying to put it that I'm stupid, it's not the fact that I bought the cable risers, but it's you who is insulting me and implying I would fall for such crap" and the most important "how can you think so low of me".
And very often this ends in "we can't really be friends".
Furthermore, the conned person becomes the loudest, the fiercest DEFENDER of his conman. Conman rests comfortably while the conned fight his battle for him although with a different reason in their minds; they will endlessly fight the notion of being idiots and this will imply justifying the conman.