Is his special defense power affected by reducers.

Yes. Hit characters can still reduce damage. But here's hoping Galactus takes a shot at him!
I want to build a team of him, Swordsman, and the Leep-air. That would be some piratey goodness. I'd probably throw Psycho Pirate on there too, for good measure.

I had wondered that myself. Hoped that they couldn't, but was pretty sure they could.

It's still a tough decision for your opponent. 50/50 chance of damaging yourself.

I need to find a spot for him on a team somewhere. I am quite fond of "parry" mechanics. I would expect this to appear on a Martial Artist, but thematically, I could see myself trying this on a team of Warriors. Raza + Shredder Clone could make for an intimidating team.