$11 - Is this worst fold I have seen, or am I missing something

[sean457j]

Seat 2 - Villain ($6405 in chips)
Seat 5 - CO ($645 in chips)
Seat 6 - Hero ($4950 in chips)
Seat 7 - SB ($1500 in chips)
SB - Posts small blind $300
Villain - Posts big blind $600
*** POCKET CARDS ***
Dealt to Hero [9 [img]/images/graemlins/heart.gif[/img] 8 [img]/images/graemlins/heart.gif[/img]]
CO - All-In(Raise) $645 to $645
Hero - Folds
SB - Folds
Villain - Folds
CO - returned ($45) : not called

Is there any reason to this, or is just a bad play? I can only think it's ok to do something like this if there is a few smaller stacks you can steal from before you get into the money. The SB must have been spitting feathers.