Given your position and the fact it is a full table, there is nothing wrong with folding here. However if you are going to play the hand, you may as well commit yourself to the pot with a raise of 4 or 5 times the big blinds or even all in. That way, nobody is going to come over the top with 65. However, you might be put all in by AA, KK, QQ, or AK which would not be good.

It was actually a great situation for you, because you had a great read on the guy and you are 2-1 favourite. And of course by being all in, position is irrelevent. You did nothing wrong.

Personally I would not put myself in the situation where I had such a difficult decision to make. But well done for making the correct decision, because calling was the right thing to do given what the guy had.