Unusual spot, KQs flop play

[sy_or_bust]

BB and Button are ultra-loose (i.e. coldcall J8o) and weird aggressive. Button is just a huge LAG, and BB will lead any made hand or draw versus any # of opponents, getting super aggro with stronger made hands. On top of that, Button is shortstacked and BB appears to be tilting.

This looks fishy, but I think it is good. I'll explain my thinking later if need be. Am I delusional, or is this super-standard?

Party Poker 10/20 Hold'em (9 max, 9 handed) FTR converter on zerodivide.cx

Preflop: Hero is UTG+1 with Q[img]/images/graemlins/club.gif[/img], K[img]/images/graemlins/club.gif[/img].
<font color="#666666">1 fold</font>, <font color="#CC3333">Hero raises</font>, <font color="#666666">4 folds</font>, Button calls, <font color="#666666">1 fold</font>, BB calls.

Flop: (6.50 SB) 9[img]/images/graemlins/club.gif[/img], T[img]/images/graemlins/heart.gif[/img], 7[img]/images/graemlins/heart.gif[/img] <font color="#0000FF">(3 players)</font>
<font color="#CC3333">BB bets</font>, <font color="#CC3333">Hero raises</font>, <font color="#CC3333">Button 3-bets</font>, <font color="#CC3333">BB caps</font>, Hero calls, Button calls.

Turn: (9.25 BB) J[img]/images/graemlins/diamond.gif[/img] <font color="#0000FF">(3 players)</font>
<font color="#CC3333">BB bets</font>, <font color="#CC3333">Hero raises</font>, Button calls $25.50 (All-In), <font color="#CC3333">BB 3-bets</font>, <font color="#CC3333">Hero caps</font>, BB calls.

River: (18.52 BB) Q[img]/images/graemlins/spade.gif[/img] <font color="#0000FF">(3 players, 1 all-in)</font>
<font color="#CC3333">BB bets</font>, <font color="#CC3333">Hero raises</font>, <font color="#CC3333">BB 3-bets</font>, <font color="#CC3333">Hero caps</font>, BB calls.

Final Pot: 26.52 BB

(I've included the whole hand since it's really sweet and gets at my implied odds).