Did I do something wrong here, or is this just the nature of PLO?

MP3 is an extremely lucky ultra fish and CO is solid in my experience.

PokerStars Pot-Limit Omaha High, $0.25 BB (8 handed) converter

MP1 ($45.40)
MP2 ($53.80)
CO ($10)
Button ($34.30)
Hero ($8.65)
BB ($32.25)
UTG ($25.65)
UTG+1 ($23.40)

Preflop: Hero is SB with K[img]/images/graemlins/heart.gif[/img], 4[img]/images/graemlins/spade.gif[/img], Q[img]/images/graemlins/diamond.gif[/img], 6[img]/images/graemlins/diamond.gif[/img]. CO posts a blind of $0.25.
<font color="#666666">3 folds</font>, MP2 calls $0.25, CO (poster) checks, Button calls $0.25, Hero completes, BB checks.

Flop: ($1.25) A[img]/images/graemlins/diamond.gif[/img], J[img]/images/graemlins/diamond.gif[/img], T[img]/images/graemlins/spade.gif[/img] <font color="#0000FF">(5 players)</font>
<font color="#CC3333">Hero bets $1</font>, BB folds, MP2 calls $1, CO calls $1, Button folds.

Turn: ($4.25) 2[img]/images/graemlins/diamond.gif[/img] <font color="#0000FF">(3 players)</font>
<font color="#CC3333">Hero bets $2</font>, MP2 calls $2, CO calls $2.

River: ($10.25) 4[img]/images/graemlins/diamond.gif[/img] <font color="#0000FF">(3 players)</font>
<font color="#CC3333">Hero bets $5.4 (All-In)</font>, MP2 folds, CO calls $5.40.

Final Pot: $21.05

Results:
Hero has Kh 4s Qd 6d (flush, ace high).
CO has Kd Td 9s Tc (a flush, Ace high - King higher).

Outcome: CO wins $21.05.