Okay...so here is what I have done...
1. freaked out...as I already had him in my main tank...
2. netted him out, scrapped all the cotton tufts, as much as possible..
3. dabbed the affected area with H2o2 (did not have iodine handy)
4. the fish is in hospital tank, with some Epsom salt and antibacterial...temp at 85F...
basically, I ended up doing all....
next step, after all that I put it through, if it survived, I will buy a lottery ticket in its name!
on a serious note, will do daily 50% WC, re-dosing anti bacterial, and refrain from feeding...