He screwed up because he valued keeping customers in the pot more than just raising himself. Most of the errors my opponents make are bet sizing in Omaha. They either bet too much and make it an easy fold, or bet too little to make it an easy call. I can see the logic of just calling the flop hoping to make your hand, or get bailed out by a poor bet from a villian and see the river card cheap.
Just getting into PLO8 but here goes.
Although you do have a lot of outs you are still drawing in both directions.
Fail. Omaha is a game of draws, the 'made hand on the flop' is a nice to have rather than a requirement to raise.