Folding the nuts?

[devilbiss]

Is this a bad fold or is it ok to lay it down given the action?

PokerStars Pot-Limit Omaha High, $0.25 BB (6 handed) internettexasholdem.com

Button ($34)
SB ($24.75)
BB ($25)
UTG ($33.65)
MP ($21.40)
Hero ($78.45)

Preflop: Hero is CO with 7[img]/images/graemlins/heart.gif[/img], 4[img]/images/graemlins/spade.gif[/img], 5[img]/images/graemlins/diamond.gif[/img], 6[img]/images/graemlins/diamond.gif[/img].
<font color="#666666">2 folds</font>, Hero calls $0.25, Button calls $0.25, SB completes, BB checks.

Flop: ($1) 5[img]/images/graemlins/club.gif[/img], 3[img]/images/graemlins/heart.gif[/img], 2[img]/images/graemlins/heart.gif[/img] <font color="#0000FF">(4 players)</font>
<font color="#CC3333">SB bets $0.75</font>, <font color="#CC3333">BB raises to $2</font>, Hero calls $2, Button folds, <font color="#CC3333">SB raises to $8.95</font>, <font color="#CC3333">BB raises to $24.75</font>, Hero folds, SB calls $15.55 (All-In).