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I think your first mistake was raising with KQo from early position. You're just not going to scare off four limpers with that bet, and you don't have good enough cards to face anyone who will raise you.
Your second mistake was that bet on the turn. The ace killed you. You might have been ahead before the ace, but you're definitely not afterwards. What did he call your seven dollar raise and then call your $12 raise with? AK, AQ, AJs or 88 are the only real possibilities. If he had a mid-pair and missed the set, he would have tossed it on the flop bet, and if he had a high pair he would have reraised you before the flop. The only hands you can beat are KJ or QJ and there's no way he called $7 before the flop with those.
I understand you were drawing to the nut spade flush, but drawing out of position sucks. I would probably check-fold this on the turn, unless his (nearly certain) raise gave me the right odds for my flush.
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