What do you mean by Teddy soaking his entire leg? He was chewing on it or did he pee on himself?
Have you tried using treats to change his mental state of mind from stressed to more positive?
If Teddy is attacking the puppy in any way or stressed to the point he's chewing on his leg, I would limit the amount of time they are together for now. Start with 5 minutes a day and go from there. Keep them in separate spaces and only very gradually let them interact more. Always monitor them when they're together.
Sounds to me that Teddy needs a slower transition. A lot of people (not just you) feel a rush to have their dogs love each other. But really, we need to work on slowing down the pace, especially if anyone is stressed (us people included).
When I brought Casie home, Scottie didn't get to see her much for the first few days. I only let both of them be in the same space once I noticed that Scottie was okay.
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