my crush called me ugly? (UPDATE) (updated update)

*UPDATED UPDATE!*
He said he was only playing and semi apologized. Told me he had no reason to insult me, so he wouldn't.
So today at work, I was staring at something (a box to be exact). My crush came up and says "the fuck are you looking at you ugly ass elf". I literally have no words. I mean elves are adorable, so that's a compliment but calling me "ugly". No one should ever hear those words. Because truth is, everyone is absolutely beautiful no matter what you look like. But I can't get over that. Was that an insult? Advice. 
So I don't believe I have everything. He's 18 (I'm a few yeas older). We're not really good friends, we're more like aquantences. We met a month ago, when I first started the job. He's nice, he likes to joke and honestly so do I. I'm glad I found my group of people to talk to and joke with. He didn't say it rude, but his voice sounded a little harsher. He usually smiles at me, stares at me from across the lanes and does stupid stuff to get me laughing. I don't know if it was a joke or not as it was said a little harshly. After that, I didn't make any contact with him. He said he was leaving, I nodded and walked the other way. I don't know how to even respond to that, as I don't know if he was serious or joking. I think that crushed my feelings for him too. It's rude to call someone ugly. Also, he makes fun people. That's so rude! When he does that I walk off, I can't do that. I hope I answered everyone.