It is quite standard to fold AA if you are in extreme ICM situation like the bubble of a satellite with a seat almost guaranteed.
However, I've noticed one thing. You said you were UTG with 7 BB and pocket aces, and UTG+1 shoved. Did you raise to 2x pre-flop before his shove?
If you did, this is your mistake. At this moment, more than ever, it is all-in or fold.
In the $109 level, a good satellite player who has more chips than you knows that you will fold any 2 cards for his shove.
He can put maximum pressure in you. Also, when he 3-bets shove, it is much harder for one of the short stacks call, because it would require maybe KK+ for them to risk their tournament life.
I
f you choose to shove your AA (again quite standard, because you can eliminate one of the short stacks, who in theory would need a premium hand to call you too), so
if you shove, you discourage UTG+1 from calling you, because now he would risk his almost guaranteed seat. If you shove, now he would have to fold even AA, because it is not worthy for him to risk his seat.
But shoving is beneficial because you will collect the blinds and antes in the most scenarios, and when you get called, you are still the favorite.
When close to the bubble, it is all-in or fold, even if you have 20 BBs, or even 30 BBs. Fold
equity is the most important thing in satellites. You don't want to call all-ins in the bubble, and if you do because you need to, you better have premium
hands.
Satellites can't be played like a normal tournament, because everybody wins the same amount. Your goal is to min-cash, not win all the chips.
