Hello ragney,
I wouldn't say that I am directly giving up there, if you are planning to go broke there then raise it up against him as you did but if you aren't that sure what to do then I'd rather just Call and reevaluate his further actions. Because according his WTS he is going to showdown only with very strong hands and therefore most often when he is betting pot into multiway pot we can likely consider him having a strong hand and while we have weak 2pairs then I'd rather just Call and reevaluate further streets and his further actions. Doesn't make sense to raise and then fold, you are turning your hand into bluff by this way.
Best regards.