This HAS to be considered a bad beat

[Penguinfan]

45 player SNG:

The hand just prior this guy lost with AA so I figure he's on tilt and I am willing to risk a race here:

Full Tilt Poker Game #788832848: $5 + $0.50 Sit & Go (5225927), Table 4 - 800/1600 - No Limit Hold'em - 16:08:00 ET - 2006/07/11
prettylady2: wow
Seat 3: Paulista (24,858)
Seat 5: Jarmst (5,890)
Seat 6: prettylady2 (19,662)
Seat 9: Penguinfan (17,090)
prettylady2 posts the small blind of 800
Penguinfan posts the big blind of 1,600
The button is in seat #5
*** HOLE CARDS ***
Dealt to Penguinfan [4c 4d]
Paulista folds
Jarmst: I melted down now
Penguinfan: little tilt there?
Jarmst raises to 5,890, and is all in
prettylady2: jar u are getting the tight squeeze
prettylady2 folds
Penguinfan: race?
Penguinfan has 15 seconds left to act
Jarmst: why not
Penguinfan calls 4,290
Jarmst shows [4s 4h]
Penguinfan shows [4c 4d]
*** FLOP *** [3s 6s Tc]
prettylady2: lol
Penguinfan: omg
*** TURN *** [3s 6s Tc] [7s]
*** RIVER *** [3s 6s Tc 7s] [Js]
Jarmst shows a flush, Jack high
Penguinfan shows a pair of Fours
Jarmst wins the pot (12,580) with a flush, Jack high
*** SUMMARY ***
Total pot 12,580 | Rake 0
Board: [3s 6s Tc 7s Js]
Seat 3: Paulista didn't bet (folded)
Seat 5: Jarmst (button) showed [4s 4h] and won (12,580) with a flush, Jack high
Seat 6: prettylady2 (small blind) folded before the Flop
Seat 9: Penguinfan (big blind) showed [4c 4d] and lost with a pair of Fours