For PC runs, no, you cannot softlock. The timer is being paused where it shouldn't.
I am actually in favour of this level being added to the leaderboard. It's a very interesting level, and I feel that is has some good potential for speedrunning (such as damage boosting through obstacles).
As for timing, I'd suggest that time should end either on the first frame of the screen fading out, or the first frame that the timer icon appears on screen.
All in all, I think this level definitely deserves a spot in the IL board. We need more levels like this. :)
Hey, so I just got this game and I was thinking about running the ILs. After 100%'ing the non-bonus levels, SpongeBob gains the abilities of all the other characters. Am I allowed to use this version of SpongeBob on the ILs? Or do I have to use the regular SpongeBob?
Also, the game has a customizable difficulty setting? What difficulties are allowed?
Edit: Ok so apparently, the "Super SpongeBob" is only active in Bonus levels. But I'm still wondering what difficulty should be used.