> So I was, uh, downloading some linux isos, like usual.
Nothing to see here, move along.
Seriously though, the OP makes the same argument and concludes that:
> I was spooked. [...] I shut down the VPS and deleted the domain quickly after confirming it works.
IANAL but this clearly shows the OP didn't intend to facilitate crime and shut it down after seeing that was what may have been happening.