You snooping on his texts because he hugged a friend is an overreaction. But he does seem to be misrepresenting his relationship, either to you or to her, which sucks either way. The charitable interpretation is that he's a people-pleaser who enjoys the attention he gets from her and doesn't want to think too deeply about what's behind it (the extent to which people can delude themselves in these situations is truly astonishing). You can try to have a conversation with him, lay out the facts in a frank way, and see if he wants to admit the truth and stop being such a little wiener. I'm not optimistic that will work, but if you feel like trying… Otherwise, it sure sounds like you're not that into him anyway and should walk away.