Is this a jerk move by this guy?

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People always get angry when someone makes a bad aggressive play with another player allin. Some people don't know what they are doing and bluff at a dry sidepot. Preflop, it is often a good play to make an isolation raise over an allin player and flat caller(s). People often getberated for that too. Yeah, the guy didn't play this real well. Your play might be questionable too. However, bluffing you out of the sidepot is not totally unreasonable, and he certainly has a right to play that way.

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I just don't understand the bluff of me when he knows he loses to the all in of the short stack already. He's in turn losing more chips.

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When villain bet at the dry sidepot, why did you raise? I am not sure if raising is a good play if you have to fold to a reraise. Also villain could easily have you beat.

Superaggressive players are generally good at reads and sensing weakness. If you had a really big hand, you probably would call and let villain fire again at the turn or bet the turn yourself. Villain may have sensed that you had top pair or something and were trying to get him out of the hand, and he figured you couldn't call the push.

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I had been playing with the short stack for much of the tournament. I knew his 600 bet there was top pair, lesser kicker, or a mid pair, strong kicker. It was his style throughout. I raised him to put him all in, if I lost I dropped 2,000 chips...if he sucked out on me.

I didn't think the big stack (OZ) was a factor, since he checked the flop and didn't raise before the flop.

There is no reason to not believe my KQ is not good when it checks around to the short stack who makes a bet at the pot.

My raise was essentially a heads up raise between myself and the short stack, to put him in, so he wouldn't draw out on me. At the point of the 600 chip bet from the short stack I thought Oz was an afterthought in the hand.

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I think he expected both of you to fold and then he could steal the entire thing. He can't be playing for the extra $31, can he?
The SS is in a steal position and makes a small bet post-flop, hard to believe s/he is stealing here.

Oz has middle pair, maybe he doesn't want to risk crippling his stack playing against you, so he's clearing the board.

Last thought- any collusion possibilities here? By raising and losing, Oz tripled up the all-in. Why isolate holding second-pair, no kicker? Is the short stack betting a 4 or a draw, and short-betting as well?

Seems a bit strange, but if you're going to play J2 here, you can't really limp with it.