You raised the flop to $80 trying to get all the money in and you accomplished that. Having done that, you could’ve checked the turn because it certainly looks as if the remaining villain could be on a flush draw when he bet-calls the flop.
Had you checked the turn, it is possible he checks back and maybe it goes check-check on the river and you save $128.
Having said that, if he shoves the turn after your check, I don’t see how you get away from calling it off getting almost 4 to 1 on your money.
The only other line you could have taken is to simply call the flop bet and wait for a non-diamond on the turn before building the pot, but then you risk the flush draw folding on the turn if he misses. You don’t likely get it all in if you slow play.
I actually like the way you played the flop, but I personally would have checked the turn, figuring one of them had a flush draw. But like I said, I probably would have call it off if the villain shoves the turn. If he shoves the river, then I have to read his soul before calling it off.
All in all, I would not worry about this one too much. It is a tough situation. That’s poker.