The walls were closing in on Pussy at that point, so I think he was throwing anything at the wall to keep both the family and the FBI at bay (like his "mindfucking" techniques that were causing more harm than good for Tony despite Pussy's intentions).

The duplicity was seriously affecting Pussy's judgement. Earlier in the season, he whacks Jimmy Bones after being seen at the party store with Skip. The murder of a half assed connected guy would have shown up on the FBI radar. Pussy may as well left a giant billboard saying "I Did It" at the scene.