Shenanigans!
You could clear everything up by citing what rule(s) player one violated.
If using TDA rules, he clearly violates rule 67 regarding disclosure. He discussed the contents of his hand - that's not allowed. It's that simple. The fact that he was wrong, right, telling the truth, lying, trying to influence, not trying to influence, etc. doesn't matter. He discussed the contents of his hand while it was live. In addition, by the timing of him saying "I was going to show a losing hand", he is not protecting Player 2 who made the decision with less information than Player 3 now has.
67: No Disclosure
Players must protect other players in the tournament at all times. Therefore players, whether in the
hand or not, must not:
1.
Discuss contents of live or mucked hands,
2. Advise or criticize play at any time,
3. Read a hand that hasn't been tabled.
One-player-to-a-hand is in effect. Among other things, this rule prohibits showing a hand to or discussing strategy with another player, advisor, or spectator.
If using RRoP he violates this rule: Showing cards from a live hand during the action injures the rights of other players still competing in an event, who wish to see contestants eliminated. A player may not show any cards during a deal (unless the event has only two remaining players). If a player deliberately shows a card, the player may be penalized (but his hand will not be ruled dead).
Verbally stating one’s hand during the play may be penalized.
One could argue that he didn't discuss his hand (although, it would be a pretty hollow argument). So, he also violated this rule: The following actions are improper, and grounds for warning, suspending, or barring a violator ...
Making statements or taking action that could unfairly influence the course of play, whether or not the offender is involved in the pot. Obviously, discussing your hand before action is complete can unfairly influence the course of play, especially when done after one player acts and another is yet to act.