I know a check-raise indicates strength, but...

[kazata]

...folding on the flop cannot possibly be correct here, right?

PokerStars 2/4 Hold'em (8 handed) Hand History Converter Tool from FlopTurnRiver.com (Format: FlopTurnRiver)

Preflop: Hero is SB with K, K.
UTG calls, [color=#666666]5 folds</font>, [color=#CC3333]Hero raises</font>, BB calls, UTG calls.

Flop: (6 SB) 3, 2, 8 [color=#0000FF](3 players)</font>
[color=#CC3333]Hero bets</font>, [color=#CC3333]BB raises</font>, UTG folds, [color=#CC3333]Hero 3-bets</font>, BB calls.

Turn: (6 BB) K [color=#0000FF](2 players)</font>
[color=#CC3333]Hero bets</font>, [color=#CC3333]BB raises</font>, [color=#CC3333]Hero 3-bets</font>, [color=#CC3333]BB caps</font>, Hero calls.

River: (14 BB) 2 [color=#0000FF](2 players)</font>
[color=#CC3333]Hero bets</font>, [color=#CC3333]BB raises</font>, [color=#CC3333]Hero 3-bets</font>, BB calls.

Final Pot: 20 BB