Regarding the CPO, you should contact an attorney and file a motion to dismiss or modify the civil protection order. It is also possible that the CPO is actually a criminal no-contact order or Temporary Protection Order.
As for your question regarding how you could have been arrested, the standard for law enforcement is a probable cause standard. This is much lower than the proof beyond a reasonable doubt standard that is needed to convict someone of a criminal act.
The answer provided herein does not constitute an attorney-client relationship, and should not be construed as case-specific legal advice. For more detailed advice or information, please contact or retain a local attorney.
If you wife lied about you by claiming that you committed a crime when you did not, then she can be sued for malicious prosecution and defamation. If she doesn't have much money, then this may not be worth your time. You should also consider filing for divorce--a marriage is pretty much over when a spouse gets the police involved for spiteful reasons.
If your case is still pending, then the no contact matter could be a court order that exists until the case is resolved. If it is a CPO at issue, then a motion can be filed that have that order vacated.
You should consult privately with an attorney; do not post anything online about this matter, and do not talk to anyone about it who isn't your attorney. What you say or write can be used against you in court.
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