palace casino

Had the following scenario at a weekly game...Pre-Flop3 of 9 players call the BB, player on the Small Blind raises. All others fold except one who reraises. Small blind talks it out a bit and says "I think I'm going to have to go all-in", the other player hears "I'm going to have to go all-in" and quickly calls but doesn't turn over his cards. Small blind says "no, i'll fold" stating that he never committed his chips or his hand.What do you think?