No- there aren't cheat codes for code shops. But you can buy products and enter codes from the tag.
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Yes
It is not possible for your PSP to get hacked. There is no need to worry about your PSP getting hacked by anyone.
type in psp demos on google or playstation store
Go to codes and type in "payrespect"
Bring your PSP to a game store (like Gamestop) and ask them to fix it.