How do I fix this situation?

Okay so I've liked this guy, Matt, for months. One of my 'friends' (whom I've gone off due to that she's a bit of slag, arrogant, selfish etc.) worked it out that I liked him and so I admitted it to her. She then came out with that she has a bit of a 'thing' for him, even though she was going out with someone else.

Anyway, I got the impression that Matt might like me; we chatted quite a lot and he was quite flirty with me. Although on Thursday he was acting in a bit of a mood with me, which was strange for him. However later on that day, he poked me in the middle of a lesson and said I love you, just for a joke but you know, I think that was his way of showing he wasn't in a mood or something. My 'friend' heard this, although I didn't take in her reaction because I always avoid her gaze in that lesson (she sits next to him) because she makes me feel uncomfortable.

Anyway, the next day (yesterday) in that same lesson, I was certain I heard Matt say my name (I sit in front), but I thought I was just being paranoid so I just ignored it.

But later in the day my 'friend' came up to me and said oh I've got something to tell you. She said, laughing slightly and grinning, that "she doesn't think he likes me." So I said "Well how do you know?" and she was like "Oh I asked him." Then she told me the situation, not telling me the inital part of the conversation, just being very vague about it. Then told me he said "oh is this about Amy?" (me) And she'd said, "no, she likes someone else". Then apparently he said "Oh that's a shame", she'd gone "really?" And he'd gone. No, really smugly or something.

To be honest, it really doesn't sound like him, cos I don't think he'd be that hurtful to someone; he's really sweet, but I initially believed every word she said. I got home and told my two other friends, who both said the exact same thing; saying she might be twisting it to her advantage because she likes him (she spilt from her boyfriend a few weeks back) and if I didn't like him anymore she might have a chance.

So now I have two problems: I don't know if he really doesn't like me. And I don't know what the hell my 'friend' said.

I want to fix this, but I don't have the confidence/guts to just ask him, in case he really doesn't like me and I'll look a fool. I've never had a boyfriend and have extreme self-confidence issues, and have all my life.

My friend said she'd talk to my other 'friend' and try and find out what she said. But how can I fix things with Matt, show him I do like him, but subtly maybe?

And also, how can I just fix this situation in general. -_- Sorry if I wrote loads, but I think it's neccessary to get the full background of the issue.

Any appropiate answers appreciated. (: &sorry if it was really confusing.