Can we fold in this spot? PLO2

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Can we fold in this spot? PLO2

Blinds: $0.01/$0.02 (5 Players) BB: $6.91 (Hero)
UTG: $1.34
CO: $1.11
BN: $2.54
SB: $5.70
Preflop ($0.03) Hero is BB with 3 A A 3
UTG calls $0.02, CO calls $0.02, BN raises to $0.06, SB raises to $0.24, Hero raises to $0.82, UTG folds, CO raises to $1.11 and is all in, BN folds, SB calls $0.87, Hero calls $0.29
Flop ($3.41) 8 6 7
SB bets $3.30, Hero calls $3.30
Turn ($10.01) 8 6 7 T
SB bets $1.29 and is all in, Hero calls $1.29
River ($12.59) 8 6 7 T 4
Final Pot SB wins and shows two pair, Tens and Eights.
BB lost and shows a pair of Aces.
CO lost and shows two pair, Tens and Sixes.
SB wins $12.29
Rake is $0.30

I thought his all in calling range must have had better card was it a cooler or i misplayed this hand?
My thought process was that if he has one pair then i still beat him

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