This was a poorly run live MTT. It was a $25 buy in T10,000 in chips with one "optional" re-buy for $25 for another T10,000 that you can take at any time in the first hour/first two levels. I started with T20,000 for $50. Almost every player has taken the re-buy. The blinds started at 25-50 and basically doubled every 30 minutes.

Tournament paid 6 places.
1rst place: $850
2nd:$600
3rd:#450
4th:$350
5th:$270
6th: $200

Blinds 50K-100K (no antes)
Despite the enormous blinds the play has continued to be very tight since the bubble broke. No one seems willing to gamble. Opening bets have taken down most pots and there's been a lot of walks in the BB and limped Blind to blind battles. I'm not sure anyone knew how to adjust for the blinds and pay out structure (I know I didn't). I'm going off memory but I've played this hand over in my head a thousand times so these numbers should be pretty close, just rounded off;

SB:5K (me) 350K behind it
BB:10K(really weak, passive player) 400K behind it
UTG: Super tight player, total mouse. 900K
MP: no reads on him. 90K
CO: total station, lucky so far. He's got just over T1,000,000
Bttn: no reads on him. 150K

UTG: moves all-in, for the first time for 900K, fold, CO calls, Bttn folds, I wake up with AJo.
UTG has been SO tight that I think he's got at least an Ace or a pair, maybe KQ/KJ but he's played very meakly so his range is much smaller than it ought to be. The guy who called him is ought to have some sort of hand, but he has been playing pretty bad. I may have the best hand but I doubt I have them both crushed. The main things I'm looking at is that there's one player who can't even pay the BB and another who can't make thru the small and big blind without shipping. If I call and either of the other two win I'm out in sixth. If I fold the original raiser can get busted moving me up a notch and I am expecting to lose at least one, maybe two more before I have to put my stack in.

Should I call and try to win this thing or fold and in my estimate move up an average of two spots without playing a hand?

I feel like I made a very bad fold and should have snap called but its hard to be objective since I Know these things; I folded the best hand pre-flop, UTG had A9o and the caller had KQs. I would have flopped trip jacks and tripled up. And, probably worst of all, the A9 held up against the KQ so he didn't bust, then both the players on life support survived there big and small blind hands. I ended up playing A2s for all my chips and lost in sixth place after all.

Was this a nit fold or defensible play that went as poorly as it could have?

I feel like this hand would be irrelevant if you played the previous hour better. In a tourney such as this the good player should most always have a massive CL at this point (or eliminated). Spend some time studying short stack play and realize how many mistakes you probably made.

Also, you say the blinds are both 50k/100k and 5k/10k. I'm going to assume 50k/100k but that would mean CL has only 10bb. I'm no ICM wizard but given UTG being very passive and two other players going to be all in on the blinds I guess I fold.

if the blinds are 50K and 100K then I would snap call.

I agree, you can't let your effective M to get into that range of below 5, or here where it's lower than that...

And with the tight CL AI, you have to assume he has at least Ax+ or a decent pocket pair. That, with the caller on this hand(who both have you covered) and two short stacks about to be blinded out (and you are on the button after this)...it's a defensible fold

Sorry, type-o. It was 50-100K.
Yeah, I understand I don't want to get my stack this low but I actually got involved in a hand during bubble play where I lost an all-in with tptk vs an over pair of aces. I probably could have laid it down pre-flop when i was four bet holding AKs, but i was getting 3 to 1 preflop then I hit the K on the flop against the loose player who has the big stack and called the all-in in the hand I posted.

Jury still seems to be out on this. That makes me feel better about it. What's my bottom calling range in this spot?