Have a question with a couple of competing principles.
PLO, heads up on the river. Player declares "all in", although both players have considerably larger stacks than the pot, opponent ( who has the nuts ) says "call". Is the original bettor only on the hook for a pot sized bet ( since this is a PL game ) or is it an action offered/accepted situation, so he owes an all in? Seems like this can be used as an angle, perhaps either way, and I would like to know proper rule.

Action offered, action accepted in my book.

Many games don't allow action greater than the pot even if offered and accepted. If you do allow it, it should require that the action is clearly understood to be beyond the pot by both parties And the caller should understand he has the option to call just a pot sized bet or to call the oversized bet and he must be clear about what he is doing.

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At our game we normally play table stakes only. But when a pot is heads up we allow folks to go into their pockets if BOTH players agree. It is very rare.

We have PLO in our rotation. If this situation would arrise , as host I would remind both of them that it is pot limit normally , BUT if both players want to drop that limit and play for stacks for that hand only, it is allowed. This is also very rare.

A " proper rule " in a home game is whatever the crew agrees is proper without any pressure. In our case , BOTH players must agree to play outside of pot limit restrictions, just like BOTH players would have to agree to drop table stakes for a hand. I don't see this as a wise move by players personally , but folks should be allowed to **** themselves at will if they BOTH agree to it and no one else is affected by this deviation from the rules.

Assuming there is no preexisting rule about this situation beforehand, it seems to me that since no bet higher than the pot is allowed, it cannot be more than a pot size bet. Even saying if the two players agree to go outside the rules is unnecessary in this case, as they can 'avoid' the pot limit rule by simply repotting each other until one of them is out of chips.

I'd imagine in a casino this would be pretty clear cut.

Also I cannot imagine you'd think about making the bet all in (or anything more than the pot) if the bettor won the hand.

I'm a fan of action offered and accepted in this spot.