Olise started on the bench for the Premier League rivalry clash at the Amex Stadium having been withdrawn late on as a precaution after playing a starring role in the 3-2 win over Sheffield United on Tuesday - his first start of the calendar year following a hamstring issue.
He was sent on at the break on Saturday as paltry Palace, trailing 3-0 following goals by Lewis Dunk, Jack Hinshelwood and Facundo Buonanotte, desperately searched for a route back into the game against Brighton.
Such a decision from Hodgson backfired massively, with Olise managing just over 10 minutes before he suffered a recurrence of that hamstring problem and was replaced by Matheus Franca. Palace eventually lost 4-1 after Jean-Philippe Mateta's consolation goal was followed by another late effort from Joao Pedro.
The travelling Palace fans were incensed at arguably their best player being risked when not fully fit with the team so far behind, with loud chants of 'you don't know what you're doing' aimed at Hodgson from the away end at the Amex.
However, the former England boss was adamant afterwards that he had followed all the necessary medical advice when it came to Olise, who also apparently told his manager that he could play in the second half
"I was told he couldn't start the game, everyone was quite comfortable with that," Hodgson said.
"But they told me, and he told me, he was fine to be on the bench and to play in the second half.
"Unfortunately I don't have a crystal ball and I wasn't to know that would lead to a recurrence of his injury."
Responding to those jibes from Palace's own fans, which were gleefully followed up by their Brighton counterparts, Hodgson said: "Wonderful, wasn't it? Is it nice? No it isn't.
"Yes, my years of management have given the me resilience me to cope with that, absolutely, and taunts from away supporters are part and parcel of our lives.
"At the moment our fans aren't very happy with everything that is happening at the club and they are making their feelings known as well.
"But I signed up to be the manager and coach of this football club and I've got the strength, resilience and determination to see things through. I'm certainly not going to be cowed by that type of thing."
Tempers looked to flare after the full-time whistle at the Amex, with video footage circulating on social media appearing to show Palace defender Joachim Andersen engaged in a heated row with fans before being pulled away by assistant manager Paddy McCarthy.
"They are realistic enough to know the fans aren't going to be happy to see their team lose 4-1 and I think the players did the right thing," Hodgson said.
"No one is less happy than ourselves. At least they went over to thank the fans and let them know we are grateful for their support. If people react, so be it."
Another banner was unfurled late on criticising Palace chairman Steve Parish and the club's ownership on an ugly afternoon for the Eagles on the south coast, something Hodgson was not happy with.
“I think it is harsh, I think it is wrong," he said. "We understand the fans are unhappy, we got beaten heavily at Arsenal and came here and our fans expected us to win the game and lost 4-1.
"It would be unrealistic to expect them to go home happy after that and unrealistic also to think the fans aren’t going to protest. All I can say is we are doing our best."
Quotes from the Press Association.