Home Game Question

Three players left...we will name them Lady ($10), Hero ($30), Villain ($60). I don't remember actual chip counts, just know who was leader, 2nd and 3rd. Villain goes all in with K-8, Hero goes all in A-K, Lady all in 2-2. Final result is Villain wins all when an 8 hits. Now, obviously he gets the 1st place money. Question is, who gets 2nd place money? The host gave it to Lady with 2-2 cause he said her hand bet Hero's, but my question is, doesn't he still have more chips than her so should they play another hand or something to determine a 2nd place? Hero feels he got robbed and as I thought about it, if Hero has 1000 bucks and Lady has 1 buck, does she win 2nd place because her hand was better if Hero still has a lot left over if Villain wasn't in?

The host makes the rules, but when two players are eliminated on the same hand in online tournaments, the player with more chips at the start of the hand places higher. So you would have ended up 2nd.

The person with the second highest chips going into the hand should have won 2nd place.

That is correct. That's how it is in Vegas. 2nd place money goes to the guy who had more money before getting eliminated.

You did get robbed. End of story.

Punch host in face.