The real question here is not about "backwards" induction - you seem to understand that correctly - but about the definition of the sum. Specifically, what does
$$S(n)=1+2+3+\cdots+n$$
mean if $n=-1$? Or more generally if $n$ is any negative integer? Clearly the usual meaning,
add $1$ and $2$ and $3$ and so on until you get to $n$
makes no sense, because the sequence $1,2,3,\ldots$ will never get to $-1$.
Part of the problem here is that "and so on" is not a precise way of stating things. To define this kind of expression properly you should do it by induction:
$S(0)=0$ and for all $n>0$ we define $S(n)=S(n-1)+n$.
If you want to define $S(n)$ for negative $n$, the natural thing is to do basically the same:
$S(0)=0$ and for all integers $n$ we define $S(n)=S(n-1)+n$.
The equation can be rewritten as $S(n-1)=S(n)-n$; then we can calculate
$$\eqalign{
n=0:\qquad&S(-1)=S(0)-0=0\cr
n=-1:\qquad&S(-2)=S(-1)-(-1)=-(-1)\cr
n=-2:\qquad&S(-3)=S(-2)-(-2)=-(-1)-(-2)\cr
n=-3:\qquad&S(-4)=S(-3)-(-3)=-(-1)-(-2)-(-3)\ .\cr}$$
Note two things. First, we are not adding the terms you may have expected: the expression for $S(-3)$ involves $-1$ and $-2$ but not $-3$. Second, we do not have the sum of certain numbers but the negative of the sum: this can be "explained" by the fact that we are going backwards, by analogy with
$$\int_2^1 f(x)\,dx=-\int_1^2 f(x)\,dx\ .$$
If you define $S(n)$ this way, you will find that indeed
$$S(n)=\frac{n(n+1)}{2}$$
for all integers $n$. To repeat: the issue here is not the induction, but defining what $1+2+3+\cdots+n$ means if $n$ is negative. If you define it in a different way, then naturally you will get a different formula.
Alternatively, you could think of it in the following way (
disclaimer: this is not going to be at all rigorous, but may be of interest). To get to say
$n=-3$ from
$1$, you will need to go "past infinity" and "continue from negative infinity". Then you would have
$$\eqalignno{S(n)
&=1+2+3+4+5+\cdots+(-5)+(-4)+(-3)&(*)\cr
&=1+2\cr
&=3\cr
&=\frac{(-3)(-2)}{2}\cr
&=\frac{n(n+1)}{2}\ ,\cr}$$
because everything in
$(*)$ cancels except the
$1$ and the
$2$.