Hate to be the bearer of bad news but...
It does have an air bubble trapped, either in his pouch or under his skin. Unfortunately, it's an all too common problem with seahorses, & males seem especially suseptible to it. You should check on seahorse.org to see about a cure. I've tried using syringes to suck out the air & that helps temporarily, but it doesn't seem to be a long-term solution. Good luck.
Anthony
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