KJs -- Tell me how badly I misplayed this hand

[PokerSlut]

This hand happened in my second orbit, so I had no solid reads on either player except that they had both played most of their hands so far. This is $0.50/$1 so I usually make the assumption that players are very loose until proven otherwise.

Party Poker (10 handed) converter

Preflop: Hero is UTG with J[img]/images/graemlins/spade.gif[/img], K[img]/images/graemlins/spade.gif[/img].
Hero raises,MP calls,<font color="#666666">7 folds</font>, BB raises, Hero calls, MP raises, BB calls, Hero calls.

When MP raised after cold-calling my previous raise, I was quite confused. I cannot think of any hands that would make sense for that action.

Flop: (12.5 small bets)
8[img]/images/graemlins/diamond.gif[/img], K[img]/images/graemlins/club.gif[/img], 2[img]/images/graemlins/spade.gif[/img] <font color="#0000FF">(3 players)</font>
BB bets, Hero raises, MP raises, BB raises, Hero calls, MP calls.

Turn: (12.25 big bets) T[img]/images/graemlins/spade.gif[/img] <font color="#0000FF">(3 players)</font>
BB bets, Hero calls, MP raises, BB raises, Hero calls, MP raises, BB calls, Hero calls.

River: (24.25 big bets) A[img]/images/graemlins/spade.gif[/img] <font color="#0000FF">(3 players)</font>
BB bets, Hero raises, MP calls, BB raises, Hero raises, MP calls, BB calls.

Final Pot: