Hes supposed to be a close friend so whys he doing this to me ?

my friend who ive known for 2 years and helped endlessly said he cant date me as theres no chemistry. i was really hurt. he said im nice looking but its not there. then he says he hasnt got to know me outside of work well enough and hasnt seen that side of me . now hes giving me a story that hes dating a model he met on facebook i know they message each other but hes enjoying rubbing my nose in it shes 23-hes 40 and keeps going on about how happy they are-she lives in the states yet he says shes been over here but her profile suggests otherwise and a few people have commented theyre not dating yet hes keeping up this pretence knowing its hurting me keeps going on about how happy he is. ive been a loyal friend and have always been there for him. ill be honest i do like him but before he would call regularly now only if he needs something. what should i do ?