Search Results: how to tell him i'm not interested

Ok so I think I know what I should be doing here but I want some other perspectives. Guy 1 is a guy I work with, guy 2 is his best friend since kindergarten. I live in a small town, otherwise I probably wouldn't have found myself in this situation.

So guy 1, when we 1st started working together, was very flirty and obvious he had an interest in me, even tho he had a girlfriend at the time. Shortly after guy 2 added me on fb, anyways later finding out they are friends. So after awhile with guy 1 I backed off, since he had a girlfriend. I didn't want to get in the middle.

Then one day guy 2 messages me, we talk, he mentions how I work with guy 1. So it's not like he's unaware of that we all know each other. So me and guy 2 talk for a month or so before we finally hang out in person one time, we just watched a movie together nothing else. But we have exchanged nudes and such, ik ik it's dumb.

Well one day guy 1 mentions he's no longer with his girlfriend and next thing I know we're kissing, and months later we've had sex. So basically I'm still talking to this one guy, not like very deep convos or anything, so it's not like this is something that would break his heart. But now he's wanting to hangout again.

Do I tell him what's going on? Or just cut off contact? Or even just hang out anyways, it's my body and who I've been with is not his business? Please help me I'm so all over about this I just need some sound advice. So please explain your reasons. And I'm leaving a lot of info out, only cause I don't feel like writing a book on this haha

He and I had feelings but turned me down citing his complicated relationship. I could tell he wanted out and something was off about the relationship. Anyways, so I stepped back and created this cold distance between us.
Fast forward 8 months, he has broken up with her and is single. He had started showing interest in me few weeks ago but I didn’t know that he is single so I didn’t give him any response.
He flirted when it was just two of us but ignored me totally when people outside of our core friends group were present. I found that strange so I stopped talking to him and he tried hard for a month by acting very nice to convince me to talk to him again.

I can tell he is interested in me but isn’t making a move. I want to tell him that my cold behaviour was simply a response to his behaviour. I’m confused if I should also tell him that if he is interested now that he is single then we can get to know each other.
Because of our history, Im scared to say anything about interest now and don’t want to embarrass myself. I have read that a man pursues a relationship when he thinks it’s his idea. Should I wait for him as he is still interested?
please suggest me what is right thing to do. Thank you!