1.
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I kept thinking she wasn't interested in a short ugly dude like me
If that's how you describe yourself to us, that's how you non-verbally describe yourself to others. I'm pretty sure "guy who thinks low of himself" is hardly on a woman's priority list.
If you don't like your outlook go to a stylist and get a haircut to compliment your head shape/face.
Buy fitting clothes and dress overall better.
Subscribe to a gym.
And accept your height for what it is. There's plenty of girls shorter than you or of similar height.
2.
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she was a solid 10
Stop putting women on a pedestal. I get it, she's hot. So what? that alone makes her a goddess to be worshiped? Before she even opens her mouth?
3.
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so i decided to buy her a drink
You decided to buy her attention for a bit longer.
4.
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i asked her if she wanted to dance.
Don't ask. Take her hand and go to the dancefloor.
5.
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Now i'm really terrible at dancing and my body was stiff and i had terrible eye contact and i felt like she kept moving away from me to dance somewhere els.
Then why did you decide to dance? And it should be obvious that eye contact is important.
6.
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Later that night i saw her with another guy and felt great regret. i've been thinking about this nonstop and its bothering me how can i let it go?
I'm not saying this to offend you, but that's pathetic. You bought a girl a drink in a club, then saw her with another dude. And now you act as if you witnessed your fiancee sucking some guy off in the middle of the dancefloor.
You need to work on that frailness. Women already own a pussy. They don't need another.
PS: Congrats on taking the club alone. And also for actually approaching.