folding an overpair for one bet on the flop

[Coelacanth]

Live 40. I think my part in this hand isn't all that interesting, but I'll post the entire hand anyways. Mostly interested in UTG's hypothetical hand. UTG is a former prop and probably one of the best players in the game. As far as I know, he thinks I'm decent as well. Button I think is good, but I can't remember any history with him. Might be a 2p2 guy. Don't know what button and UTG think of each other.

UTG raises, two big super calling station fish call, button 3-bets, I cap K[img]/images/graemlins/diamond.gif[/img]K[img]/images/graemlins/heart.gif[/img] out of the small blind, BB folds, rest call. Button has just over 9 SB left at this point.

Flop 7[img]/images/graemlins/diamond.gif[/img]6[img]/images/graemlins/diamond.gif[/img]2[img]/images/graemlins/club.gif[/img]. I bet, UTG folds what he later claims to be QQ, no diamond getting an immediate 22.5:1. What do we think of this fold? (For what it's worth, I don't think he was lying about his hand, but just pretend he's actually got what he says here).

Rest of the hand, which isn't all that interesting - button and I cap it 4 ways on the flop, Turn 5[img]/images/graemlins/spade.gif[/img], I c/r button and one fish calls, button 2.6 bets all in and we both call, and I check-call the 8[img]/images/graemlins/diamond.gif[/img] on the river when the remaining fish bets into the dry side pot, which I don't give him credit for understanding.