Good Fold or No?

[John in Michigan]

I was playing in a free roll on Fulltilt last night. No real read on opponents at this point. Here's the situation:

Blinds are 25/50. I am fourth to act pre-flop with a pair of 8's.

One fold then two limpers. I raise to 275. Player behind me calls. Everyone else folds to first limper who calls my raise. Second limper goes all-in and has the table covered. I fold. Player behind me folds.

First limper calls the all-in. He turns over KT offsuit. Other limper shows KQ offsuit.

Hand is won by player with KQ. I would have won if I had stuck around.

My thinking was the guy who initially went all-in had to have a bigger pair than me. He saw me raise, two people call my raise then went all-in anyways.

Flawed logic?? Yes?? No??

Thanks.