Villain hasn't been playing a lot of hands, but seems weak. Flat-caller just got his stack, won two hands back to back, one where he limp/called a shove w/ AA > JJ... other hand, 77>A9 in preflop for 2400 pot. On to the hand....

PokerStars No-Limit Hold'em Tourney, Big Blind is t200 (9 handed) Poker Stars Converter Tool from FlopTurnRiver.com (Format: FCP)

UTG (t9622)
UTG+1 (t1700)
MP1 (t4250)
MP2 (t4995)
MP3 (t3650)
CO (t11555)
Hero (t3679)
SB (t935)
BB (t3770)

Preflop: Hero is Button with K , T .
2 folds, MP1 raises to t400, 2 folds, CO calls t400, Hero.....?????

The SB's stack really messes this hand up: you can't flat call because you'd hate to see the SB put all 950 in and mess up the dynamic of the hand, and you can't really make a move without expecting the SB to hitch along for the ride.

Factor that in with the fact the MP2 (if that's your villain) just showed down a willingness to go to war with 77 (Did he accept all-in w/ 77, or push?), and KT just isn'tstrong enough to do much with. I'm far from a HOH regurgitator, preaching about FIV, but the above factors make this a little too hairy to pull off a squeeze. There's nothing more disheartening than spending time pondering how MP2 and CO will react and watch both blinds cold-call your "move" before it even gets around to the original pot-entrants. lol.

You've got an M > 10, you can certainly afford to wait for a better hand, or at least a better spot.

I fold this in a heartbeat

Yep

I fold... I only like squeezing in spots where both villains have been playing very loose preflop. Since the initial raiser hasn't played many hands, this isn't the spot.