To play devil's advocate:
It might depend on where in the tournament I was, but I might not fold. If I had reason to believe either of the two players knew what they were doing, I'd figure to have player 1 beat, and player 2 to be on a draw. I don't know what the levels were, but if they were something like 150/300, and Player 1 had a decent chip stack, then he'd have to have a worse hand than K9. If had a set, I'd think he'd either slowplay (or be cautious to see if there's a flush around) or push to drive out a flush draw. Similarly, if Player 2 had hit the flush, it would be unwise to push at that point, as he has a lot of more cash coming to him if he can keep you both in the pot. Then again, with a short stack like his, that push might be so small that he felt confident he'd be called anyway.
The only option I wouldn't consider is calling, though. Either fold or raise. If you're going to keep your hand alive, you want Player 1 out of there. Either way, the only hand barring the made flush that either of them would realistically have that would be a favorite over you is the 33. KK or 99 would surely have gotten a raise pre-flop.
I cheated though; I thought for more than 10 seconds, and under the clock I might have folded as well. Good thing you did, as it turned out.