Hello dzikson999,
Preflop: Well, you must still understand that he is squeezing vs a SB who is most likely rather a bad player. So might not be the greatest option cause more often he will end up having a hand. Therefore I'd rather wait a bit for more information or better spot.
As played
Postflop: Checking the flop is still fine cause the guy could easily be trapping there as well and which actually would have made me rather fold the turn. Even though his play doesn't make sense but I would assume that he easily could get fold equity by just betting himself on the turn as well.
Best Regards.