I see your point. However, I was using "deny" in a different sense than the one you are interpreting it in. See:
Thesaurus.com
You are thinking of denial as this:
I see you steal RADZ's lunch, but you deny it, saying that someone else might have taken it.
What I am saying is this:
RADZ's lunch is missing. I blame Bluejay and you deny it, i.e. refusing to believe or answer to my accusation, whether true or not.
In the first example, you are denying evidence in plain sight, as the lunch is obviously on your desk. In the second, I am making an unfounded accusation which you have no reason to believe, and thus simply disbelieve.