Like I said in the other thread. In Minnesota, you have and hold the title but the title indicates the lien holder. Once the lien is paid, you get a lien release. You take the lien release and the title to the DMV and get a new title issued that has no lien holders indicated on it. Many people don’t bother to do this though and it doesn’t matter.
I believe he has the title but indicates a lien on it. He paid the lien, but the friend refuses to give him a release after payment. This is a breech of contract. The OP has the title and there is no way the friend has any claim to the car now and especially since the lien has been paid.
So like I said, possibly the DMV can force the issue with proof of the payment of the lien and issue a new title with no liens indicated on it regardless of the wishes of the friend. The other way is to go to small claims and get a court order to either the friend to release the lien or to DMV to reissue the title. Should be simple but bothersome. In the meantime if any of the friend’s friends try to do anything with the car, they have absolutely no claim and the Sheriff should be called. Its called theft or harrassment.
In this case, make new friends and keep your old ones doesn’t apply and is bad advice. First stop DMV. Second stop local court.