Boosie Badazz's is torn up about a Houston jeweler getting killed shortly after they met -- but he's also pissed there's internet chatter he might be involved in the crime ... something he's angrily denying.

No doubt, Boosie's Labor Day weekend visit to H-Town, ended in a tragedy -- the death of Duke the Jeweler. Police sources tell TMZ Hip Hop the 29-year-old died from multiple gunshot wounds, and was pronounced dead Sunday at 11:46 PM.

According to cops, witnesses said they saw 2 unidentified Black male suspects hop out of a black GMC truck, approach Duke on foot and fire several shots in his direction ... before fleeing the parking lot.

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