Tough spot! What do you do?

I played live with friends last night.
We play a monthly tourney (around 20-30 runners paying $60 buy in)
Once the is a few runners busted we fire up a cash table playing $1/$2 no limit.
Anyway, here's the situation.
We played cash for around 2 hours while the tourney was still running.
A few people have bought in and left. We're playing 3 handed with the stacks pretty even of around $300 each.

Its getting late and we've had a good drink and the tourney has just finished so I say "lets just shove all in blind next hand eh"

Both guys laugh and say no, but then One guy looks at his cards and says "Ok I'm all in".
Second guy folds, I look down at my cards and peel back JJ.
The guy, is a decent enough player, he'd had a good drink and was playing very loose all night without being a maniac.

What do you do?