Am i over reacting i feel really betrayed?

Because of how some people are raised, masturbation can be tricky. He might feel like it's something that he should be ashamed of or that you might be threatened and you need to make it clear that's not the case. Everyone is entitled to a fantasy life and masturbation is a healthy way for you to have one and not cheat. I think that if you're upset about him putting restrictions on masturbating that's one issue. You being upset he lied is another. Address both of them. Let him know how you feel about masturbating and let him know how you feel about him masturbating. That way there's no misconception about what's going on. But be sure to let him know how you're feeling. Even if he doesn't understand it or like it, at least you were honest.