Nolan was holding a pretty big secret over Dylan's head: that they secretly hooked up while Dylan was in a relationship with Andrew — right before Dylan and Andrew were going to move in together, mind you! Nolan eventually blackmails Dylan to make him do all of his school assignments. Maybe Dylan he finally hit a breaking point and snapped!
Why He's Not the Killer:
It definitely seems like Dylan has some unresolved feelings for Nolan, so we doubt that he would actually kill him.
He is the first person to jokingly suggest to Ava and Caitlin that they should kill him. That would kind of give him away, no?
He is part of the group being surveilled by the professor.