>>So, after getting loads of advice, clarifying what the issues were, getting more advice... What ultimately happened?
>
>Nothing so far. In other words, I don't exist anymore and this makes me so miserable, that I can hardly concentrate on anything else.
>

What do you mean, you don't exist? Don't let this guy get under your skin so much!

Maybe there is a cultural element to this. Do you feel like you are obligated to be subservient to this Svengali no matter how badly he behaves? Not in this country you aren't. From everything you have described you have not done anything wrong at all. My suggestion is to keep a cool distance from him and move on with your own work. You may be pleasantly surprised to learn which of you the company considers more valuable.

Really, seriously, stop beating yourself up over it. Move. On.

Best of luck!