He is non-hostile to the player and you are supposed to be able to talk to and trade with him, but the moment he sees you engage in combat with a raider (even if the raider shoots first), he will become hostile to the player. This doesnt seem intended since his dialogue specifically says he only cares about your caps, and the wiki just says that you can trade with him because he is non-hostile to the player.
There's always a raider in his room so what usually happens is that the player runs in, kills the raider (who immediately starts shooting the player), and smiling jack becomes hostile (which usually results in him dying to the player). I'm pretty sure that this did not happen in FO3.
This seems to happen because the SmilingJack faction is listed as an "ally" to the RaiderFaction, so he instantly becomes hostile if he sees you engage in combat with any raiders. IIRC, FO3 didn't have NV style factions so smiling jack doesn't become hostile when you fight the raiders.
I think setting them to be friends rather than allies would make more sense, it would stop the raiders from murdering him and it would prevent him from becoming hostile to the player (which didn't happen in FO3).
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