Just thought I'd give an update. The wrasse continued eating and I fed the tank three times daily. Today he is "fine", out and swimming in the water column, no lethargy, no shimmying along the bottom of the tank. My theory is that without a sandbed some wrasses are like an insomniac. No sleep makes one a little odd
So enter sandbed:
Took him a couple of days to find it and recognize what it was. Now every night around 9:30 he dives into it and its nighty night
Note: this is the backside of the tank. I wanted it perfectly visible for him to recognize it for what it was. Now that he has, I've moved it off to the right hand side so you can't see it from the "display side".