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I'll take a stab at this one. Feel free to disagree.
It's $25nl, so you have to put a real premium on what you call re-raises with here. This guy has a full stack, and you have pretty close to one. You raise it up with your AQ, which is fine...then he reraises you in position. A bell should go off here. *DING*! You got reraised, what I guess is a pretty standard reraise. Me myself, I'm putting this on QQ+; so I'm going to say this guy has either QQ, KK, AKs, AKo (maaaaaaybe), or AA..maybe rarely a JJ. Myself, I'd toss it more often than not...but let's try to play it out the best we can since there is a flop to be seen.
Now here comes a flop. You hit your Q. Definitely sweet. The pot sits at $6.35. He has position on you also. Here's where I think one of those 20% of the time top pair checks I was reading about earlier comes good into play. You have a backdoor flush, and that good ol TPTK. I would check and see what he bets here. We are definitely wary of overpairs, and I think checking disguises OUR hand better.
When he bets (we'll assume he bets after his reraise), then you could pull out a check-raise and see where he really does stand. If he pushes over your reraise, I'd say be done with it. It's not a bad fold...but I definitely wouldn't lead out for less than half the pot. He established dominance preflop. Think of it like a conversation; "I raise you, so my hand is badass, fold now!" Naturally on the flop (c-bet or otherwise), he wants to continue the message; and when you bet out a smallish amount he is going to come back with another "FOLD!" message (the raise).
That's my Setzified analysis. Take it as you will.
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