Moved this guy to a hospital tank and treated with Pima/Melafix. The lip thing has definitely gotten worse in the last 24 hours. Not the greatest picture but puffy and red and white on his lip. NOT fluffy.
Looks like an injury from lip locking between males. I would add salt and turn up the heat, but you may need a stronger antibiotic if melafix isn't helping the problem.
Yeah, he is in a hospital tank with one other fish atm, they are seperated by a tank divider. We could easily move him to his own 5g. I will check on him tonight when I get him, we can always hit him with erythromyacin which we have on hand.
I go along with the "lip-locking" theory. It could be a wound.
The only thing for that is clean water and maybe a little extra salt. if the wound is open then pulling the T is the best option....as you have already done.