Yes, you got the action right. I raised from UTG+1 in a six handed game after UTG limped in. On the river, I bet, sb raised, and UTG folded.
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I wonder if it is possible that he has something like KJ and was waiting for a clean runout (which he got). I am definitely calling since his line makes no sense. 88 should be 3-betting pre-flop and K8s should be check-raising the flop most of the time. This somewhat increases the chances that he has something strange that we beat.
This was my thinking too. He could potentially be value raising something worse? Idk, it seems thin, but also seems very hard to fold given the size of the pot.