Should i quit my job?

ok heres a quick background of my situation. i work at my uncles dental office and i have been since i was 14 so 7 years now and i love my job. well 2 days ago while working with my cousin (his daughter) she came running back to me in tears because she saw one of the girls we work with caressing his arm while he was working on her teeth. so i calmed her down and talked to the office manager about it who happens to be my mom. she said lets just keep a close eye on them and see what happens. so i guess later that night my cousin confronted her father about what happened and his wife overheard and a huge fight broke out. my uncle was pissed and said it was MY fault that all this happened and i probably told his daughter to say what she did.. BUT I DIDNT!!! so now he says that me and my cousin are not allowed to work together anymore because we are trouble makers and he cut my hours down in half! i am not a trouble maker and i didnt do what he says. now i'm pissed and i want to quit my job. am i wrong? what should i do? should i quit like i want to or am i over reacting?