A year later, the teacher said to the others on a party that he just tore apart my test.
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That just makes me sick, I knew someone once who hung themselves because they never passed their course at uni. I think people like him should be shot.

A year later, the teacher said to the others on a party that he just tore apart my test.

That just makes me sick, I knew someone once who hung themselves because they never passed their course at uni. I think people like him should be shot.
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I wouldn't say shot, but certainly what he did is immoral and possibly illegal.

He lied to the student, and made a written misrepresentation in the permanent academic transcript to cover his lie.

At best it was an honest mistake. At worst is was criminal libel. In the latter case, he should certainly be punished, but probably never will be.