Woman moved away from me on bus and made rude comments about me to others. Should I have confronted her?

Your last words are correct,this woman had absolutely no reason to slander you in such a vicious manner. You should have came to your own defense as well,while stay on the phone with the person you were speaking to,so she could not accuse you of anything else in the process. You should have turned around,remained very calm,but to the point,said excuse me,I am on the phone here with my bride to be,and I could not help over hearing your viscous and false words about me,and you really need to get over yourself and get a life and see a shrink for paranoia,before you find your self in a court of law for slander and harassment. Then turn away,and continue your conversation.