It's a match your close friend got you hooked on, instead of feeling too bad about it why don't you just show the girl both of you like that you are way better than him. Feeling bitter about it won't make you the "more deserving guy" , don't show yourself up as the bitter one, but it should motivate you more to protect your girl from that kind of person. It's a battle, isn't it more painful to see your girl falling for his "submarine" tactics?
Or just to check the other side, let's say maybe that close friend of yours was also interested with that girl long before you confirmed you like her? Your "telling him" made him decide to pursue the girl because he like her too and you might get her easily without
him putting up a good fight. He was challenged by your admission.
Stop the talk and pursue her, she hasn't decided yet so good luck.
