Yes Hero overplayed. 6-handed the KQo call in CO is on the light. The question Hero should be asking is, "What do the Villain have that they would raise preflop and then check call the flop?" And then ask, "Which of those
hands can Hero beat that would BOTH Villains would call 3 streets with?"
Hero's hand is fairly face-up in a penny game. I wouldn't expect BOTH Villains to be playing too tricky.
After Hero's raise on the turn one needs to wonder why Villain didn't just call after BB folds? The pot would have been $1.47 and Villain would have $1.37 behind. Instead she re-raised less than 1/3 pot (after her call) leaving less than 1/3 pot behind. Either Villain is really bad (possible in a penny game) or she is sucking Hero in.
The flop is damp. the flop bet is OK, but the raise on the turn was ambitious and Hero should realize the turn re-raise with so little behind is effectively an all in. Hero has little chance to improve, 2Q and 3K, or 10% much better to check the turn.