Hey guys. Villain's pushing range that ICMizer states here can't be possibly right, right? What range would you assign villain here and would that still be a call?

This is normal. Nash calculator gives the same result pretty much.

SB shoves 41.8%, 22+ Ax+ K2s+ K9o+ Q4s+ Q9o+ J6s+ J9o+ T6s+ T9o 96s+ 98o 85s+ 75s+ 65s 54s
called by BB 18.9%, 44+ A3s+ A7o+ K9s+ KTo+ QJs

I play a lot of 5-max SNGs at the moment with a 2-1-0 payout, which exactly mirrors the situation here (you all have 3rd place money locked up, and the remained of the money splits 2/3 for first and 1/3 for second) - I would jam pretty much exactly this range here - maybe one rank stronger for the suited hands (i.e. not the X6s stuff).

Villain may be jamming tighter, but he is also probably capped without JJ+ and AK which have you crushed so a call is fine. His move does suggest he understands 3-handed bubble play too, so he'll be pretty wide (and this is a bubble, they could just pay 3rd place money to your accounts already).

There are other long-term factors that calcs can't simulate - you're losing equity every hand getting pushed around by the big stack - getting out of that phase and making your stacks "join forces" against the big stack is probably better than a calc will tell you it is.

Why is that? Wouldn't that make him very unbalanced and open to being exploited?

Well you can still only call so often if he takes both the top and bottom out of the 41.8% range above.

But it depends a bit on gameflow. IMHO it looks suspicious when good players just minraise to induce in this kind of spot if they've been jamming the whole time. A lot of people think it's a waste to open jam more than 20 BBs with AA though. I just jam, it's always nice when they hero-call with Ax

IMO good player will not do that. Not vs thinking opponents at least.