What do i do with him now?

The real question here is: What do *you* want from this guy? As others have said, he obviously has feelings for you, so either you need to make a move (if you like him in that way), or you need to leave the poor guy alone (if you don't want him romantically). Yes, it'd be nice if every failed romantic effort could end with two people remaining good friends, but realistically speaking, that doesn't always happen. Trying to force it to be so is needlessly cruel, and will send the guy confusing mixed signals about your intentions. Let him down easy, but then let go completely so he can heal his heartache and move on.