Etsy Ettiquette?!?!

I know, I know we have established that I sell some of my crafts on Etsy.  I said I wasn't going to pimp it out anymore and technically I'm not.  I have a legitimate question that I want some feedback on.  So this guys starts a conversation (Etsy's version of a direct message) with me on Etsy last week.  He says he LOVES this one particular frame of mine.

He really wants to buy it but he can't until he gets paid next week and could I put it on hold for him.  I messaged him back and said that there is no hold feature but that I could put it on inactive and then put back up as active on the day he wanted to buy it.  He said that wasn't necessary that I could just put RESERVED FOR _____ (this would be his name) in the title of the listing and that should be enough because he had seen other sellers do this.  So that is what I did. And wouldn't you know it not 6 hours later someone else bought that frame and another frame from my shop!  I didn't want to cancel the sale because frankly this person bought TWO frames and paid immediately and I just wasn't sure this guy would stick to his word.  So I packed up the order and shipped it.  I then began making another frame like the one above that the guy loved.  It will look a lot like this one but not identical because they are made by hand and will vary slightly.  The guy messaged me again today asking where it was because he was going make it a favorite on his account.  I broke the news to him that it sold but told him I was almost finished with another one that should be done by tomorrow.  Oh and I was going to tell him what happened once the frame I am making for him is done.  He seemed ok with it but only time will tell if he does and buys it.  So I am wondering if it was right for me to sell the frame to the other buyer and was it rude on her part or my part??  Is there Etsy ettiquette? Has any one sold on Etsy for awhile and have any comments??  I've only been selling for about 3 months so I am still new to this.  Anyway I feel guilty all around about this but I am thinking I should get over it!