You played the hand fine, but because it is a very low stakes game (meaning people don’t really know or care how to play poker), the other guy made some bad decisions and called you and then got lucky. That happens to me all the time.
This morning in a 50k tourney, a guy raised big (1/3 of his stack), I had AQs in the bb and re-raised him all in, and he called with K7 offsuit. He hit a 7 on the turn to win the pot. That is poker. He was dumb and called with a 33% chance to win (although he may have been pot committed), but he still had a reasonable chance to get lucky, which he did.
I still finished ahead of him and cashed the tourney even though I was crippled by that. I still have 38,000,000 chips because it is easy to end up ahead when you make the right decisions, even when luck goes against you sometimes.