The guy wanted a job, didn't know what answer you wanted for the job, and you guys were being assholes.
If you can accept that then you've learnt something.
On the other side of this though, the third time the guy should have realized that hedging wasn't working and committed to the truth or a lie.
> you guys were being assholes
Where was this coming from?
It was a question of the form trying to figure out how you deal with "X", and he denied X having ever happened, despite that being a core part of his current role.
He was an internal candidate, we were interviewing him to see if we could trust him with more responsibility (more X specifically), since the new role shouldn't cover up X when it happens. The role involved doing X for himself AND for other people.
Similar to the form of "tell me about your biggest weakness" and you responding with "I have no weakness".