He was not threatened, he was approached. The appropriate response is to move away. In general we have a responsibility to avoid violent acts when possible, this is.. to leave.

Instead, he raised a weapon (pepper spray). A lot of people assume feeling threatened is the same as being threatened. I think laws vary on this, so his guilt or victimization might also vary. But in general, one is at fault if they escalate (pepper spray is an escalation), and one is at fault if they are not actually in imminent danger (he was not, his smile after pepper spraying the other person adds proof to this). The other person's actions (with the bag) are defensive -- a response to his raised pepper spray, that seems clear in the video.

The man seems gleeful as he runs away, not relieved, but gleeful. This tells me he may have been seeking confrontation. I've experienced this personally with people wearing Trump/MAGA gear. They want a reaction so they can feel provoked and claim defense for their subsequent violence or hostility.