You are correct, a little banter between Oscars is not uncommon, especially if they are breeding pair. However, the aggression between your Oscars does sound like pure aggression and nothing else. The fact that the Oscar is hiding away means that it is frightened. In situations like this, I think it would be only fair to spit them up if it carries on for a long time and injuries up being caused. Oscars that do get on/Pair up will not fight for three days.
People might advise you to put a divider in to separate the fish, in my opinion, this is a complete waste of time because they would just start fighting again once the divider comes out. Maybe give them a little longer and see what happens, they may well settle down, but I wouldn't hold my breath. It's not nice having to get rid of fish for this reason, but you do have to think about the fishes welfare, you cannot have two fish that are constantly fighting, it will only end in heartache.