I wanna hug him and return his feelings but?

[Olive]

A guy at my school named Matt, late last year I had a few days off sick from school and when I returned all of the year level (people my age) were telling me how he liked me and thought I was hot..

we were only in the same english class last year

everybody said that to me for weeks, including his sporty friends who are very popular and often stuck up.. it was very weird
I started liking him more, his friends told me to talk to him and get to know him because he's too shy to do anything

I spoke to him on facebook about 3 weeks after and found we have similar music taste

I told him 2 days later that it was me and he instantly became more polite and seemed happier and less moody, my friend noticed it straight away because she could read it (cause its her account after all)

anyway, I was about to ask him if what his friends said was true, but before I asked, he knew I was going to soon..
he randomly said 'its not true, those were all rumours'
while we were talking about school
I was disappointed and asked why everyone came up with such a rumour and he said 'I told my friends to stop but they're d!cks..'

the weird thing is that it was too random to be random.. haha, his friends never talk to me like they were, playing with my hair and telling me he's shy but has a good personality

my friends all believed the rumour to be true as well, they said he was too gutless to admit it though..

this year he keeps staring at me but we dont have lessons together, we're seniors, he's sometimes in the library before school and thats it.. he has his ipod in and does a little bit of work...
I have nothing to say but he has this look, when he looks at me and I look at him he looks straight away... he is shy and he's never had a girlfriend unlike his friends

what can I do.... :c
thanks so much guys!