[curtains]

There are a lot of decent looking options here....

A - Call. You are doing this to do everything in your power to eliminate the BB. Now a funny situation could arise in which someone raises and you will call if the BB calls (because you will win 3rd place because you had more chips to begin the hand_, but you will fold if the BB folds, expecting you to call. This maximizes your chance of defeating the allin player, as his only chance is to win the whole pot.
Now the very next hand you and the small stack will be allin preflop if he folded the previous hand. Once again, if anyone calls, the SB will have to win the whole pot for you not to come in 3rd. If everyone folds to the SB and he ends up winning, you still have the chance to win your next allin hand and watch him try to survive another round of blinds.


If you should raise allin UTG its a problem because if someone else calls, the BB has an easy fold. If you have a monster hand like AA or the like, you should take the risk, because your chances of moving up the ladder if you win the hand, are pretty decent.


option B - simply fold preflop and hope someone else knocks him out. However this plan greatly increases the SB's chances of winning the pot.


I thought about this pretty quickly so forgive me if I made some major insight. But I dont think you have to fold in this situation....because as long as you are both allin at the same time, he would not only have to defeat you, but also win the entire pot. If you should fold and he ends up winning the hand, you are a pretty sizeable underdog to money.