He has clearly overstepped the mark - by a long way - and however good your relationship has been in the past I think you need to step back. Let him cool down and when he realises what a prat he has been, accept his apology. If it is not forthcoming, forget about texts etc, drop him a card saying you still love him as your grandson but this behaviour both frightened and disappointed you. That you will be there for him in case of need but need his assurance that such a thing will NEVER happen again. He sounds a troubled young man, but soft soaping him, giving him money and letting walk all over you is NOT the best way to help him. It must hurt you dreadfully, but TOUGH LOVE . What an awful experience though 
what is this behavior called does it have a name?
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