How long has he been divorced? I don't think you did anything wrong,
COMMUNICATION in a relationship is a key factor.

If he is still hung up on his ex-wife, maybe he isn't ready for a relationship, until he can cope/deal with his feelings/emotions of the break-up.

This is up to you on whether you want to go on as a friend and see if it develops into a girlfriend again or more. I would be upset and hurt too. Is there a chance they might get back together?

Personally, this is just me, I couldn't handle it. I would get out of it asap.
But remember I am going through a major trust issue with men, so maybe my advice isn't good. I'm just at that point that I don't want any relationship, but I am just recently separated.

As they say there are more fish in the sea. Maybe you need to see other men, instead of just him. If he just wants to be friends as he says to other people, then just be friends, don't let him play with your emotions.

Hugs, Nikko