1:05 PM PT -- And just like that, there will be no Naptown beatdown during NBA All-Star Weekend from either Mike Epps or Shannon Sharpe's camps ... the "Club Shay Shay" host is issuing an apology for escalating the situation and promises a "man-to-man" sit down soon.

Mike Epps isn't backing down from Shannon Sharpe's apparent threat that the streets aren't safe for him ... this, after the comic recently took some big shots at the HOF'er.

In response to SS's recent tirade against him on his podcast with Chad OchoCino -- in which Shannon claimed Mike had lied on his name (more on this later) -- ME himself hopped online to address it Monday ... clarifying who reached out to who, and what the deal is.

ICYMI ... Mike did a stand-up set about a week ago where he made fun of Shannon and his viral "Club Shay Shay" interviews lately, particularly the Katt Williams one. In his set, Mike said Shannon had reached out to him for a follow-up sit-down -- and then went on to make some homophobic jokes at Shannon's expense ... all of which caught Shannon's attention/fury.

On Sunday -- while recording his pod with Chad -- Shannon unloaded on Mike without ever naming him -- and said the gay jokes didn't bother him ... but the "lying," as he put it, did. He went to suggest he'd be confronting Mike about this soon, and perhaps more.

Welp, Mike's got a response to Shannon now ... explaining he had actually DM'd Shannon in the aftermath of Katt's now-infamous interview -- during which Mike says he felt Shannon was trying to bait KW into trashing his former 'Friday' costar, even though he never did.

Mike says he thinks Shannon is out here trying to get people to say wild things about others just for clicks -- and on the issue of meeting up ... ME says they can do that too.

Now, he does note he doesn't fight anymore -- so it doesn't sound like he wants to get physical with the former tight end (frankly, nobody does) ... but he continues to taunt SS.

BTW ... Mike has some shots for Shannon's pod partner, Chad, and some insults to boot.

Mike and Shannon are bound to cross paths next weekend at 2024 NBA All-Star Weekend ... which just happens to be in Mike's hometown of Indianapolis. So ... things are happening.