2-3 Preflop Spot

Got into an interesting spot last night in the 2-3 game which is normally the biggest game in the room with only 1 table going on the weekdays.

Straddle is on button for $10 and we are 7 handed right now.

Loose, not very good player opens from SB acting first to $25 and he has about a $200 stack.

BB calls, UTG+1 who is a loose reg who plays literally every day (not sure if hes somewhat a pro or what) just calls, folds to hero who has KQs.

Thought about just calling and raising as options. With SB being loose and short stacked i decide to raise because I dont mind being all in with him with this hand.

Hero 3bets to $150. Folds to SB opener who calls (leaving himself like 40-50 lol).

BB folds, UTG +1 now backjams for another $365. Needless to say I was surprised. I have not seen him make this move before and I've played with him a lot since hes always there and he typically gets out of the way when I 3bet because he has only seen me 3bet premiums large like this.

Am I supposed to call this off? I went into the tank for a while. Im really worried about being dominated by AK/AQs. Maybe w all the money in the pot I just have to call, but I dont know.