Complex sentence: When Daz found out that Penny and Victoria had made fun of Scarlett, he was angry but went looking for Scarlett and on finding her, made it clear he was flattered but he was still dating Penny.
Split into simpler sentences: When Daz found out that Penny and Victoria had made fun of Scarlett, he was angry and went looking for Scarlett. On finding her, made it clear he was flattered but he was still dating Penny.