Should I be upset about this?

Ok so me and my friend were at lunch an we were joking around and then she fell off the seat with her feet still up on the seat and then her iphone 1 yes iphone 1 falls out of her boot and she picks it up and she's like you cracked my phone and blamed me for it and now she's going around the school saying I broke her phone which clearly I didn't and now everybody feels sorry for her and hate me so what should I do did I break it or was it her fault because I made her laugh which made her fall off the seat I don't really deal like I did anything wrong because maybe she shouldn't keep he phone in her boot

No you didn't and you need to face her and ask her how that could possibly be your fault. Its not your fault that she's uncoordinated and can't keep her balance

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