Do you see what that told Joseph? They thought that they were guilty of murder—and that they were bearing that burden. Now, in verse 28, it is confirmed. Here Judah is quoting Jacob:
Whenever Joseph heard that, he knew that Judah was telling him the truth. He also knew that there was a secondary sin of which they knew that they were guilty. That is, that Jacob did not know the truth about what happened to Joseph. ("He was torn in pieces," Jacob thought.) Now Judah, if he was telling the truth, could not have told the story any other way. And he did tell the truth. If he had told it the way that it actually happened, then he would have had to admit before Joseph of a far greater guilt than that which they were now accused. Thus, as he gives the story to demonstrate his and his brothers' innocence, Judah gave testimony to Joseph (and now, to us) of his and his brothers' guilt that they were carrying in their heart of hearts. Joseph became unglued, because he knew that these men were facing up to it.