Stinky job interview

Okay, so over a month ago I had a terrific job interview. I was told during the interview by the hiring manager that I was the #1 choice for the job. He was planning on having me start work between March 15 and April 1.

Time passed. No offer comes. I contact him 3 weeks ago and he says he will let me know in a week. More time passes.

I get a message from him today that he had another offer out to someone else during our original interview and that person accepted.

Is it possible that I could be the #1 choice and there was an outstanding offer to someone else at the same time?