$Freeroll NLHE MTT: Open ended in the flop (Blinds war)

Microgaming - 150/300 NL (8 max) - Holdem - 8 players
Hand converted by PokerTracker 4

MP+1: 13.83 BB (VPIP: 12.33, PFR: 2.94, 3Bet Preflop: 0.00, hands: 73)
CO: 9.17 BB (VPIP: 16.13, PFR: 6.90, 3Bet Preflop: 0.00, Hands: 31)
BTN: 5.78 BB (VPIP: 8.11, PFR: 2.86, 3Bet Preflop: 0.00, Hands: 37)
Hero (SB): 34.99 BB
BB: 20.86 BB (VPIP: 26.04, PFR: 11.83, 3Bet Preflop: 6.90, Hands: 96)
UTG: 9.85 BB (VPIP: 0.00, PFR: 0.00, 3Bet Preflop: 0.00, Hands: 4)
UTG+1: 3.77 BB (VPIP: 2.50, PFR: 0.00, 3Bet Preflop: 0.00, Hands: 40)
MP: 11.34 BB (VPIP: 31.82, PFR: 23.53, 3Bet Preflop: 4.35, Hands: 90)

8 players post ante of 0.1 BB, Hero posts SB 0.5 BB, BB posts BB 1 BB

Pre Flop: (pot: 2.3 BB) Hero has 6:diamond: 7:spade:

fold, fold, fold, fold, fold, fold, Hero raises to 2 BB, BB calls 1 BB

Flop: (4.8 BB, 2 players) 8:spade: Q:club: 5:diamond:
Hero bets 2.5 BB, BB raises to 18.76 BB and is all-in, fold,

How do you play in this spot?