I think there's a case for capping the flop. It helps to have a read on button. His 3-bet could just be some positional move with top pair, or two pair. He could also be juicing with the flush draw. We shouldn't give up yet.

We should be betting this turn. If villain raises, then I think we shutdown and call to the river. Either way, we want a showdown, and can make notes on villain's play.