I have noticed lately that one of my main weaknesses (and there are many so that should say something ) is that I don't know how to handle the short-stackers that are making obvious squeezes in multi-way pots but are taking away my implied odds.

If it's headsup I know how to play it pretty much (3-bet or fold essentially) and if I'm last to act I can also deal with it (call if the others in the pot give me implied odds for sets, etc) but when I limp with a small pp and others behind do as well I'm never sure.

Take the following hand as an example:
Full Tilt No-Limit Hold'em, $0.50 BB (9 handed) Hand History Converter Tool from FlopTurnRiver.com (Format: FlopTurnRiver)

saw flop|saw showdown

UTG+1 ($52.50)
Hero ($75.45)
MP2 ($39.20)
MP3 ($56.90)
CO ($44)
Button ($110.20)
SB ($19.50)
BB ($51.20)
UTG ($26.70)

Preflop: Hero is MP1 with 8, 8.
UTG calls $0.50, 1 fold, Hero calls $0.50, 3 folds, Button calls $0.50, SB raises to $3.25, 1 fold, UTG folds, Hero folds, Button folds.

Final Pot: $2.50

Here we have the shortstacker raising it up and leaving implied odds of only 5:1 so I can't call for set value, and with the button still to act and covering me I can't 3-bet shorty all-in so what's the play...am I resigned to folding on these plays all the time?