Guy just sat down, no read

Party Poker No-Limit Hold'em, $ BB (6 max, 6 handed)

Button ($45.65)
SB ($49)
BB ($62.72)
UTG ($63.15)
MP ($36.45)
Hero ($49.70)

Preflop: Hero is CO with , . SB posts a blind of $0.25.
UTG calls $0.50, 1 fold, Hero calls $0.50, Button calls $0.50, SB (poster) completes, BB checks.

Flop: ($2.50) , , (5 players)
SB checks, BB checks, UTG checks, Hero bets $1, Button raises to $3, SB folds, BB folds, UTG folds, Hero raises to $10, Button calls $7.

Turn: ($22.50) (2 players)
Hero bets $10, Button calls $35.15 (All-In), Hero folds.

Final Pot: $67.65

Results in white below:
No showdown. Button wins $67.65.

What could he have to push with there that didn't have me beat? Or was it a bad laydown?

I think it's a good laydown. The only hands I can put him on that you have beat are 89 and TT. Possibly JJ - AA but since there's no PF raise I don't think much of that. On the other hand, he could have 77, 88, 99, 67h, TJh, 67o, TJo, and it seems much more likely that he has one of these hands.

you're in too deep to fold. i agree it feels like you're beat, but you're getting over 3.5:1 to call and he might have JJ/TT, something like [8h], or like 98. since he just called your flop reraise, i think it makes a set somewhat less likely. i think TT is as likely as each of the higher sets.

I also think it's too late to fold. If he has a str, you have 10 outs to a boat. With these types of board, he could easily have 2 pair, or 1 pair and a draw.

i think a straightforward villain could have:

9-9/7-7 for the overset.
9-7 for flopped top 2.
[8h]

a made straight is very unlikely. villain would have had to raise your bet and then call your reraise with only a gutshot...either JT or 65. [8h] is a possibility but an unlikely one. it looks like he probably has you over-setted or you have him drawing very slim with 9-7. when he pushes.....there's $68 in the pot and its costing you $25 to call. you're getting close to 3:1 on your call. there are 6 ways for him to have you oversetted and 9 ways for him to have 9-7. i would call and hope for the best.

jon