Is this one of those "fold the nuts on the flop" hands?

PLO$50
Seat 1: ($10.10)
Seat 3: villian ($60.55)
Seat 4: ($39.05)
Seat 5: Hero ($162.55)
Seat 6: ($49)
Seat 7: ($43.50)
Seat 8: ($46.30)
Seat 9: ($41.55)
villian posts the small blind of $0.25
seat 4 posts the big blind of $0.50
The button is in seat #2
*** HOLE CARDS ***
Dealt to Hero [T[img]/images/graemlins/heart.gif[/img] 8[img]/images/graemlins/heart.gif[/img] 6[img]/images/graemlins/club.gif[/img] 5[img]/images/graemlins/diamond.gif[/img]]
Hero calls $0.50
UTG+1 calls $0.50
MP1 calls $0.50
MP2 folds
CO calls $0.50
button folds
villian raises to $3.50
BB calls $3
Hero calls $3
UTG+1 calls $3
MP1 calls $3
MP2 calls $3
*** FLOP *** [4[img]/images/graemlins/heart.gif[/img] 7[img]/images/graemlins/spade.gif[/img] 8[img]/images/graemlins/spade.gif[/img]]
$21 in the POT
Villian bets $10.50
BB folds
Hero ???
3 people left to act behind. Re-potting puts everyone else all in
Okay, well to explain the PF hand selection. This was the last hand I was going to play and I know this is some terrible logic, but yeah. My friend said I was going to double someone up in this hand and it looks like I got into this kind of trouble. I was just wondering what the best play is here. Is it to just pot it? I wasnt worried about the initial raiser at all, I was worried about someone having the same straight and free-rolling on me, should this be a conern? I was also worried that there was a set and FD out there and that if the set called my allin the FD would have great odds to call and I would barely be a favorite. I was just wondering what exactly I should do here.