$10NL How might you play this flop?

Ok here I pick up a decent hand in late position and raise 1 limper getting 3 calls. On the flop I have an overpair and a gutshot. MP1 bets, with 4 players in the hand I assume it's a value bet or he's drawing to a flush or str8, I make a pot sized raise but he re-raises. At this point I'm pretty worried about my hand but villain has only .80 left. There are 2 other players to act but with this flop betting they will need strong hands to continue. However if one does come he's probably beating me too. So should I just put the villain all in? Do I call in the vague hope one of the others comes along and I hit my str8? Surely folding can't be right? How was my raise on the flop? Thanks for any comments

PokerStars No-Limit Hold'em, $0.05 BB (9 handed) Hand History Converter Tool from FlopTurnRiver.com (Format: FlopTurnRiver)

Button ($1.07)
SB ($5.95)
BB ($3.46)
UTG ($4.95)
UTG+1 ($3.93)
MP1 ($10.50)
MP2 ($3)
MP3 ($6.40)
Hero ($10.63)

Preflop: Hero is CO with 9, 9. MP2 posts a blind of $0.05.
3 folds, MP2 (poster) checks, 1 fold, Hero raises to $0.2, 1 fold, SB calls $0.18, BB calls $0.15, MP2 calls $0.15.

Flop: ($0.80) 7, 8, 5 (4 players)
SB checks, BB checks, MP2 bets $0.3, Hero raises to $1, SB folds, BB folds, MP2 raises to $2. Hero ???

Uhh, looks like the other two folded.

Everything looks fine, I put him all-in.

I'm all-in.

The flop raise is fine with the 2 people behind you. Now you put him AI but I wouldn't be happy about it. You're likely flipping against anybodys range here.