From almost dating to "just friends" ?! long post

So my ex fiance of 9 years dumped me for another woman (one he introduced me to to be friends with and I was actually friends with no less but that's another story) a few months back and before he dumped me while our relationship was still alright he introduced me to his friend. We hit it off really good but naturally wouldn't do anything because I was with my ex and he was my ex's friend. Well fast forward to a few months after the breakup and his friend and I start talking more and we find out that we have a lot more in common than we initially thought.

His friend had reservations about us doing anything because he didn't want to jeopardize his relationship with my ex but after I talked to my ex I was pleasantly surprised to find out that he approves of our relationship and was actually very happy at the prospect of us dating as he thought that we were perfect for each other and could make the other person very happy.

So his friend and I start hanging out more and becoming closer and closer and we ended up having sex a few times which was mind-blowing each and every time but then he came over yesterday and said that he just wanted to be friends.

He says he doesn't like his personal life and work life mixing together and because I'm so connected to his work where he's a support manager at because of my ex and my ex introducing me to everybody in the store he doesn't want to be pestered about his personal life there and it gives him a bit of anxiety thinking about it.

He also said that he's been jaded in his last 2 relationships because of the work connection and that is why he has his rule set up that he doesn't date anyone that's connected to his work or his friends.

I guess one of our mutual friends was questioning him yesterday and that was the final straw for it? I don't know exactly what they said to each other but I guess my friends stated that he had some opinions of his own on the matter and kind of left it at that.

What's weird is we've been acting like a couple for over a month now we go out and do things we hang out we get along fabulously all of his body language points to him wanting to be with me and he's even openly admitted to wanting to be with me but this? I just don't know what to do and I'm feeling a bit heartbroken over it.

I thought things were progressing very well with us and now all the sudden it's like I just ran smack into a wall. He said that he's a bit broken right now and he needs to figure some things out and that's not to say that we won't end up together in the future but right now we just need to stay as friends. What do I do? Sorry for it being so long. I really want us to work out and don't want to lose him but I'm at a loss. Initially when we started hanging out he said we needed to be just friends but then it turned into more than just friends so I don't know if that's going to happen again or what.