I told a guy no when he never asked me?

I have Grad coming up and people are starting to get dates. This guy who has liked me in the past told a whole bunch of my friends he was going to ask me, and so when my friend texted me saying "Would you go with ______?" I thought it meant she was asking me for him because he is really shy. Dumb I know lol. Then we (my friend and I) talked about it, and I just want to remain friends with the guy. Me and the guy were texting about Grad and it seemed like he had asked her to ask me, so I dumbly replied saying I am really sorry, but I just want to be friends... He then said I never asked. So I was like omg sorry my friend made it sound like you were. He was like now I no not to ask.. I feel bad, and I don't know what to say at school tomorrow to him! I am really embarrassed and its a misunderstanding. I told the guy that and he said "Lol". What do I say to him tomorrow? I am really embarrassed and need a way to play it off.

Thanks! :)