reraised to mix things up, same as you would in six max holdem
This is where a lot of newer Omaha players make a mistake...Omaha isn"t Hold'em. There is a darn sight more post-flop play in Omaha than HE...hence that"s why you don"t generally re-raise once you have a decent read. Let them make the mistakes and then take advantage when they don"t improve and you do.
If he has Aces (or Kings) as suspected he practically has to pot any flop regardless as a c-bet. If you miss, you get away cheap, if you don"t you re-pot and punish him.
what do u do now in this spot,.... is it a mistake to fold when his hand is face up and we have a hand that plays well against aces?
First off, I disagree that we have a hand that plays well against Aces...it MIGHT if we flop big but at the moment it"s a "pretty hand"...and they"ll break you most of the time.
In this spot..well, he"s re-raised and so I"m going with my plan which is to flat call and see the flop. Yes, I/you could have flatted his 0.35c but that"s gone now. So continue with the plan from here.
[EDIT]Just re-read the stack sizes and given that, I"m changing the options...you can"t flat call as you are pot committed if you do. So, it"s shove or fold. Me, I"m too conservative to have re-popped him pre-flop but ho-hum...what to do?
Me, I give it up but if you are a gamblooor..just get it in now and reload if beaten.