I personally think that Asim was in the right. He clearly told Rashmi that Sid's comments will be twisted and there was literally no benefit of arguing with him. I think after the WKV before the last, Rashmi has also understood that arguing with Sid will tarnish her character more. (This doesn't mean that Rashmi is always right. But because of BB's directives and Salman's complicity, Sid always gets away with whatever he says. Also "hinting at someone's wrongdoings" is not the same as calling them out.)
Asim could be the worst game player, but last night he wasn't provoking Sid. His entire body language is different when he wants to fight. Yesterday, he genuinely wanted to end the fight.