The fact is, he's a teacher, he let the kids get the better of him over a joke, he probably overreacted to it which would then only prompt the kids to call him that name more, to the point where he suspended multiple students over it, ...over a joke of a name. The best way to deal with it is to let it slide or jokingly play into it so that they see it doesn't bother you.This isn't ok, but it reveals a lot of who you are. @DeafTourette too, that one doesn't surprise me his decision tree pointed to liking this.
By the way, what does it reveal about me? The way you jump to throw a comment like that in and rope in another member says more about you.