What does this side hug mean?

I really like this guy that I'm friends with in college (we're both freshman and have known each other for about a month). He's the captain of his floor and planned a cookie party, so I offered to walk with him to the cookie store and help him carry the boxes back. We are both really into writing, so he asked me to tell him about things I had written in the past and what I was working on now. I told him that I was working on something loosely based on the relationship between my sister and I. When he asked what that relationship was like, I teasingly said, "Now I can't tell that to someone I've only known for a month." Then he hooked his arm around my waist and pulled me into a side hug. I placed my head on his chest and felt him place his head on top of mine. We stayed like that for about a minute. I told him while laughing,
"This doesn't change anything, you know."
And he said, "You don't have to tell me anything you don't want to." He pulled away when the cookies were ready.

I told some of my friends about what happened, and I got mixed views, mostly consisting of:
A: He's totally into you,
and
B: A side-hug is just an awkward thing. It doesn't mean anything.

What do you guys think? I'd appreciate any outside opinions/advice.

You used a sexual innuendo, and it worked. You turned him on.

It means he wants to have sex. Love and faithfulness must be proven.
I feel this guy can deal with woman, and he wants you......

I think you should tease him more, until he cant avoid a bold move.
Reading your conversation, you are able to do that :)

Remember: the more he will fight for you, the more important you will be for him.
Remember to reward every move.....step by step....

ask for your price, if you dont want to be a few nights stand.

Ya he likes you....the hug was to feel out if you like him too. You responded, and he is now assured. He may or may not make a move, he may just play it cool to increase desire. Be a little flirty with him and try more friendly banter....but don't over do it. You still want to be a little mysterious so he will chase.