I may get flack for this but in this day and age. I wouldn't have curved. Coulda put her on reserve as a backup on your team.
Didn't have to smash but just letting her know that the offer is appealing but you'd rather have her over when your girl is there.
Bounce and keep some contact. If shyt goes down south with said girl, bet you she woulda been ready to give you the cat.
Women are the goat of this and will make a bidding war right in front of your face. These days if I'm with someone, and I truly have no intentions of breaking that commitment, I'm 100% cool on starting a bidding war. Keeps your girl in line when she can feel the tension from another chick desiring you.