Why did he say he did not want to lead me on and mentioned he has a girlfriend during the party?

I met this guy at a party tonight. I thought he was cute and I like his style, but I was informed everyone was taken at the party. So, I wasn't even gonna think about anyone like that. But I swear this guy had his eyes on me when he saw me walked in, he started talkin and he was like just friendly with me the whole minute until I got him to take a shot because he lost during a game he wanna play with me. Then, we had a moment where we stopped talking and just looked at each other... all I did was smiled up at him. Then, he mentioned that he did not wanna lead me on because he has a girlfriend. I told him that I'm glad he said that because I was informed everyone is taken. Then, he was a bit taken back by my response and didn't say anything else. Someone else walked in and started talking to us. But I purposely kept my distance afterwards because I felt a little awkward he mentioned it... I don't get it if he thinks I was making moves on him or he was afraid of himself with me because he made me feel like he was friendly and attracted to me.

Why did he say he did not want to lead me on and mentioned he has a girlfriend during the party?
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