I would have smooth called his bet and hoped to hit a spade on the turn. If you're just calling, he might give you decent odds to see a river, too.
Your raise is doubly unnecessary as you don't even have a made hand - you want to see the next card as cheaply as possible. You know that any flush will give you the nuts (straight flush excepted on his part), but you need to get there first, and there's a 65% chance you won't.
He's making what looks like a value bet here - which is great for you as it gives you pot odds to call - and he's likely, should you call, to make another value bet on the turn.
Assuming he has KK, which is certainly what he's repping (or AA - this would make sense if he puts your raise down to making top pair), then you will take his whole stack for sure should you make your flush (and he doesn't make a boat).
The answer to your question is that I would fold after his all-in. He repped strangth pre-flop and made a value bet on the flop - this means only 8 spades can be considered clean outs, and your pot odds aren't close to being good enough to justify a call.
You played the flop badly, but I hope it's clear to you why and if you learn from it, you'll be fine.



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