Did I wrong the young man or did I wrong myself by ending the engagement after hearing reports about his bad character, knowing that he is from among the people of the Qur’an and his parents are of good character, and that some of those who conveyed the news to me had an interest in it?

Breaking off an engagement is permissible for both parties, even if done without a reason they dislike. The command to marry a person of religion and good character is for strong recommendation. What you have mentioned does not necessitate that you have wronged yourself; rather, you may have missed out on good by not marrying the young man who possessed religion, good character, and belonged to the people of the Quran, due to your haste in believing a report of his bad character without verification. Now, do not dwell on the past; instead, look to the future and ask Allah to replace him with someone better for you. We also point out that istikhara (seeking guidance from Allah) has no relation to psychological feelings; rather, the one performing istikhara proceeds with their need, entrusting their affair to Allah, certain that good lies in what Allah chooses for them.