Fortune and Men's Eyes
(1971)

Smitty is a young man put in prison for marijuana possession.

An alpha male named Rocky protects him in exchange for sex.  With encouragement from a drag queen named Queenie, Smitty asserts himself and beats up Rocky.  Rocky can't deal with the humiliation and kills himself.

Smitty completes the cycle of revenge and becomes a hardened criminal.

Thanks Don P!