Hughes said: "The Wigan situation was a little bizarre. I'm not sure where Steve was coming from. I think he confused everyone, including himself.
"Managers obviously want to keep their players but cheap shots at City are the norm at the moment.
"If certain players attract attention from other clubs, that's to be expected. Sometimes certain managers will react in a certain way. We're just trying to do our business."
Bruce has since rung City executive chairman Garry Cook to apologise for his outburst but not Hughes himself.
And there is clearly little love lost between the former Manchester United club-mates.
When Hughes was asked yesterday if Bruce had been a friend at Old Trafford, he replied: "He was a good team-mate."
Hughes insists all City's dealings with Wigan over Palacios were above board.
He added: "Garry Cook contacted their chief executive and we were told he could be for sale. It was Steve who revealed our interest, not us.
"I think people get a bit emotional about losing their best players and say things that aren't warranted."