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You don't have much info on the SB,
On the contrary, I have all the information I ever need. Villain has 35bb and has just flatted in the BB. Villain is a fish...99% of the time.
Read on...
Failing to pick up on non-HUD related reads is a huge leak in online poker, and even more so in games of limited information like cash Zoom.
At 25nlz there are two types of villain playing with short stacks:
Fish
Adept short stack ratholers
As a nailed-on population read, there are pretty much zero adept shortstackers at 25nlz. I’m sure there are one or two, but we don’t adopt a meta-strategy based on the 1% do we?
I label every single 25nlz short stacker as fish until proven otherwise, and to date, I’ve never re-labelled a single one.
Failing to note you are in the hand with fish will have disastrous consequences on your win rate especially if you are assuming fish are unknown regs and then trying to play them balanced. This would be a mega leak. Keep your balanced poker for the regs (and true unknowns who should be treated as regs until proved otherwise). Proven fish should always be exploited using unbalanced strategies. (check your Janda, he says this clearly enough).
If you want a theoretical resource, for what I've just written, read up on Bayes Theorem in Chapter Three of The Mathematics of Poker.
Finally, we can add a spot read to our population read on the hand in question. SB has 35bb in the BB. A skilled shortstacker has no flatting range in this spot, they would be 3bet or folding, so we can confirm villain is a fish in this spot.
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I still say without anymore info than what you have, may be best to fold as an exploitative play.
Villains fish flop spazzing range in this spot is
huuuggggeeee, and hero folding an over pair would be a leak of biblical proportions!!!!! Heads up it's fist pump call, sigh to his occasional monster, make a note, move on.
This hand is more interesting because we have one behind, but that is irrelevant in the context of our discussion re the short stacking fish.
If you are interested (I don’t recommend it!!) there is a ratholing cash game strategy in Chapter 16 of the book Kill Everyone (which is weird because it is a tourney book), although for accuracy I should mention it is a 20bb strat, not a 40bb one.
TL/DR
At 25nlz a short stacker is never an unknown, is 99% of the time a fish, and should always be exploited.