Maybe she is a trans-sexual. So, he naturally likes her more then you because she has a penis.
You see now
Cheer up.
I dunno, maybe he thought you were too good for him, and he gave up. Maybe he thought he was wasting your time and his, because he knew you would.
(A). Not go out with him for more then one date.
(B). Thought the relationship would never lead to sex(hey, a lot of people think that way).
Edit..I agree with TheoneandonlyD, we need some pics..