Bad player to my right raises big

[theredpill5]

Bad player who about 15 minutes ago moved all-in preflop with 7 7. Now he is raising $8 preflop in a .25/.50 NL game.

Hero $63
Villain $42

Hero has Q Q

Villain raises to $8
Hero calls
Everyone folds

Flop: 9c 7s 2s

Villain moves all-in for $34
Hero ?

This was a tough call for me. Even though he previously moved all-in for $35 preflop with 7 7 , I can see him having K K or A A .

I felt I could put my money in better spots so I chose to fold. Am I crazy ?