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I think in this spot, since we are no longer on the bubble this might be okay. On the bubble, however, you are pretty much handcuffed by ICM. Generally I try to attack shorty with the upper part of my range and try and end the bubble. If you are "blocked" by the big stack, however, i.e., he's in between you positionally - you are pretty much screwed. Not fun. Pretty awesome to be the big in this spot, conversely. You need players who somewhat understand ICM or who are pretty into those pay jumps or it won't work very well.

account re opened, thanks for the input guys.

I was wondering this too nervy, whats the correct play for the middle stack

Nice Result. Well played also.

It is a well thought out strategy but it is really difficult to tell the difference between this and collusion. In these hands though I think the other stacks are already so short and only one other left that the straightforward play would be best.
Your thought process is good though and it sometimes is easy to mop up a lot of chips from the medium stacks if a very short one is present so don't be too eager to kill the golden goose. It doesn't work quite so well when only one other mid stack player is involved as really you are only waiting for the mid stack to take out the shortie.

Hm, having read all the arguments this seems to be pretty reasonable. Hope you get your account back.

P.S. what you should you do now in theory in middle stack spot? Shove/call bigstack raises much lighter as you know that supershort one is not busting very soon?

Not much the mid stack can do except suck it up and hope to find a monster or be allowed to clash with the shortie.
Actually, I did post above that it is not that useful in 3 handed play but you can slowly mop up the mid stack in a particularly cruel fashion. The mid stack can't even call 3 way allins without holding a monster - as losing when the micro wins the hand is a disaster.

Actually people will collude for even less than $10. I played a $5 sitngo once where the BB just needed to call 5 chips to possibly knock someone out on the bubble but he folded thereby chip dumping to his associate. PokerStars caught the guys and returned my money. That's a play that sends a red flag up to PokerStars security and exactly the play that can convince other players that there is collusion going on.

PokerStars needed to freeze your account so they can be sure that you didn't withdraw money while they were looking into the matter. I always found PS to be pretty reasonable though and I think that they have seen enough various plays that they don't jump to conclusions. Glad things worked out.

I employed this stratagey in a MTT and it was very effective. Folding every hand to the short stack and constantly shoving on the middle stack. Lots of folds. I won a 3 dollar tourney lol.