You have two choices:
Stay and put yourself above this situation. Let him not bother you and realize that you know your truth and that's all that matters. When you come into contact with his propaganda, ignore it and remind yourself you're a phoenix who has risen above the ashes. Then, once you're done with the master's program, move wherever you see fit.
Move to another city/state to get your master's degree. Or move somewhere to work for a year or two and then get your master's. The work experience will never hurt and it will allow you to get past it without it being in your face every day. Who knows, this urge inside of you to move could be the best thing to ever happen to you.
I moved from Atlanta to Dallas in 2009 without knowing a soul. I traveled to Dallas for a weekend to pick out an apartment, check out a few places, and pulled the trigger a month later. This move has opened SO MANY more doors for me than staying in Atlanta. I wasn't running from anything other than a stale life after finishing my degree. I now own a house, am engaged and expecting, and started my own consulting business 4 years ago.
If you need a book inspiration, Succeeding When You're Supposed To Fail is a fascinating, really quick read.
You'll figure out your path and the doors that will open from listening to your inner voice will help you radiate from within. If it were me, I'd choose option number 2. Best of luck in whatever you decide to do :)