Folding KK preflop for the first time ever

I recently folded K's preflop for the first time ever, and I wanted to know if anyone else agreed with me or if I made the wrong play.

I was playing on Full Tilt, $.25/50. I sat down with my normal $50 buy-in. I have only been playing on Full Tilt for 2 weeks, but I have made $300 in 40 hours in that time, so I'm doing well. My FOURTH hand, I'm in the CO seat with KK. I have not seen a flop yet, as every flop has been raised, and the table seems a little loose, which is good for me. There is one limper (UTG), and the next guy raises to $2. The next guy goes all-in for $120. I was really stuck, because I didn't know what the hell was going on. My first thought was AK or JJ, which is sometimes the play in a tournament for psychos who hate seeing the flop with these two hands, but because it was cash, and the table was crazy, the guy may have had AA and just might thought he'd get a call because it was a such a whacko play. Another thing I thought about was the fact that the guy had run is buy-in ($50 max) up to $120, so either the guy was getting really lucky or had some idea of what he was doing. Rather than just calling and going "doh, I lost $50," I opted to fold. I ended up winning $15 in 2 hours in this session, but this hand was sitting in the back of my mind the whole time. Did I make the right play?

Thanks,

~Bux