What to do about this situation with a good friend of mine (potential flirting or nah)?

Anonymous

Me and this guy have known each other a good while. We lost contact for a time. I got into a BAD relationship and my then-partner would not allow me around friends. So I stopped talking to or hanging out with that friend to satisfy him (SUCH a mistake). Me and that former partner have been separated awhile now and I have since reconnected with that friend of mine.

The first time we reconnected, it was by chance. We seen each other out. He immediately knew me. I was surprised he remembered me, but he did. He came up for a big hug and commented that it had been a long time.

We now see one another a few times a week. He is always wanting to hug me a lot when we meet. He is very friendly in general (all around nice guy), but the hugs seem to last longer with me. Things have been sticking out lately - people in our "group" have been questioning me a lot and asking what "we" are. I say friends. Even a random waitress taking care of our group at an outing asked if he was my boyfriend.

Last night, we met up in the usual group. I was getting grilled pretty good by a couple of the newbies to the group. The one in particular INSISTED they totally felt/seen the sparks when me and this friend looked at each other and they commented how much he looked over at me. Then another chimed in and said we would be super cute together. I was a little embarrassed and didn't know how to react. I was going to slip off without saying bye to my friend because I was afraid one of them had said something to him about that. I got up when I thought he wasn't looking and snuck off to my car. He FOLLOWED me to my car. He didn't want me to leave without saying bye. He hugged me extremely close and held me. He commented how well I had gotten along with the new people in the group (making it clear he had been watching what I did). He pulled me in again for another embrace as soon as we pulled apart from the first one and said he hoped I had enjoyed the evening then said he'd see me the next night.

Updates
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So based on that, does it sound flirty or friendly? I was not expecting him to follow me to my car. I guess he noticed I was gone and went to find me to say bye. That was one of the tightest hugs yet. I mean he wrapped me up and held me very close to him for way longer than a usual friend embrace. Then he pulled me back again as soon as we pulled apart. He does watch me a lot when we are having our hang outs. He smiles a lot when he watches me interacting
Updates
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So as a new update from tonight's hangout - we stepped outside away from the group to talk and say our goodbyes more. He called me his "dear" as he went in for the first hug. He said "my dear" then opened his arms and gave me the same very long, tight hug as he did last night. He held me close and kind of swayed with me a little. As he held me, he thanked me for coming out tonight. We made plans for tomorrow and he went in for yet another tight hug then softly said he was looking forward to it.
What to do about this situation with a good friend of mine (potential flirting or nah)?
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