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Depending on stack sizes, if his read was really that good, isn't this a horrible fold? You said it was raised from 40k to 80k, so he was getting over 3-1 to call (due to blinds and antes). He's about 18% to win, but the implied odds are huge if he knows he has AA.

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I have to agree with this statement. It's the exact same reasoning behind Farha's decision to call a 1k raise with 33 while the blinds were 25/50. He knew they were aces and knew he would bust the other guy if he hit his set. Farha hit the set and cleaned him out.