[ChipFish]

If I am reading this correctly, the betting wasn't capped by the other player at all.

Let's analyze:
Player A Checks
Player B bets ( =1 bet)
I Raise ( =2 bets)
Player A Folds ( = still 2 bets)
Player B Caps ( = 3 bets)

Now I'm not sure here, but When I play limit, It gets capped at 4 bets.
Did you actually cap it with the 4rth bet?

I also think that if the betting did indeed get capped on the flop, then although Player B was perhaps a tad aggressive, you should probably not have allowed a cap on the turn....
With that board and the re-raise, he either had a lower set, 2 pair or a flush draw.

Now, I am not saying I am 100% correct but here is what I would do and why.

I would raise and reraise until capped on the flop because it's cheap.

At the turn you would have to recognize the possiblity of a flush draw.
I would merely call the bet here.
Why? Limit the damage.
If he hits the flush on the river, it won't cost you as much.
If the third diamond hits on the river, then you can call his bet, or bet if he checks, and call his re-raise if there is one.
If he doesn't hit the flush, Then you can hope to heavens he lets you cap it again.... if not, you still take down a decent pot.

That is merely how I would have played that hand.