Correct play is a fold. It's easy to get suckered into a double paired hand in PLO but you have to be careful as not all double paired hands are created equally.
The problem is your second pair is below a pair of 7's. So even if you hit your set on an unpaired flop, it'll either not be the top set, or if it IS the top set, a straight is possible (i.e. you're unable to flop the nuts with the 55 unless it comes 55x)
In addition as others have pointed out, there's no connectivity between your pairs. QQJJ or JJTT is going to play a lot better. Even then, facing significant action, depending on the opponents those may be folds as well (if your opponents are the type to show up with AAxx or KKxx in these spots) as having a paired hand against a higher pair is generally disaster (I'd rather have JT98 vs the AAxx or KKxx holdings, for instance)
Your JJ55 hand isn't going to play great against a multiway field or even headsup against the hands others should be stacking off with preflop. So as you said, your fold was the correct one, results be damned.
edit: Forgot to add this is a fold pre, I wouldn't be calling raises with it either.