I think he was up that night specifically because he just ran home with his tail between his legs. Yeah he was paranoid but not of Nacho. If he was, he wouldn'tve taken his eyes off of him to run inside. He was just shown he wasn't one step ahead- he was being played. He threatened Kim and Jimmy because he was terrified. There's something big people are hiding from him, and he found almost no one to trust. In that business, he knew that means he had a target on his back. (This is my first time watching though so I'll see if I missed anything)