Well, I'm of two minds on this...
The first is that he's lying. He is interested in you...just keeping it to himself. Lord knows I've played it this way more than few times. You hang out, you offer a bit of yourself and let her confide in you hoping that eventually, she's going to see what's right in front of her and make a move. Play the good guy, all the books say, and eventually she'll come round. He's moving away because you haven't choose him and it hurts him to see (and hear) you fawn over other guys. Guys that in his mind should be him. It's hard to be that guy.
On the other hand, you say he's not interested... Maybe he's pushing you away because he's disappointed in you. I mean, maybe he has a pretty high opinion of you and it hurts him to think his friend, who he holds in such high regard, would date what he thinks are unacceptable men. I've been friends with a lot of women over the years (and still am I guess
) and sometimes it irritates me to no end that my friend---this smart, loving, caring, incredibly strong woman---would stoop so low to date such knuckle-draggers. Women who say they respect intelligence and think that wit and a sense of humor are sexy and then turn around and date the young, intellectually vacant guy with the six-pack and tight ass. Again...hard to be that guy.
Just my nickel...