Paradise Poker Pot-Limit Omaha High, $0.25 BB (8 handed)

MP1 ($67.25)
MP2 ($35.00)
Hero ($110.75)
Button ($35.25)
SB ($36.00)
BB ($37.00)
UTG ($19.50)
UTG+1 ($65.50)

Preflop: Hero is CO with , , , . SB posts a blind of $0.25.
1 fold, UTG+1 calls $0.50, MP1 calls $0.50, MP2 calls $0.50, Hero calls $0.50, Button raises to $3.75, 1 fold, BB calls $3.25, UTG+1 folds, MP1 calls $3.25, MP2 folds, Hero calls $3.25.

Flop: ($16.25) , , (4 players)
BB checks, MP1 checks, Hero checks, Button bets $16.25, BB folds, MP1 folds, Hero folds.

Final Pot: $32.50

Yeah, I almost raised preflop to like $16-17 but decided against it. I don't know why. Obviously if i had and got a caller, i would have to be all in on this flop. How bad was this?