Yeah, it's alright to squeeze it pre flop, but don't do it if you're not gonna commit to your hand.
Calling is fine as well. The pot looks really nice though and I'd be very tempted to squeeze
Postflop: SB could have anything. Shorties go broke with any pair, any draw, any random crap. I would shove over his raise, because I wanna kick CO out of the pot, as he could be drawing and you're getting pretty comitted to your hand.
So I shove over him. Or raise to $30, whatever. It's pretty much the same
Cheers