I don't know what to suggest, it could be bacterial or could be predatory (ie a crab or something attacked while he was sleeping, I've lost a few fish that way). I don't know what you can really do at this point, IMO catching the fish and QTing him might just add to his already stressed state.
Its good that he's still eating (?) and could be that he's just wearing himself out trying to swoim with less than great steering and propulsion. I had a midas blenny lose his tail right down to the caudal peduncle (the meaty bit after the fin) and after figuring out that he shouldn't be swimming all the time he finally settled and half of it grew back after quite a number of months.
I don't know what to tell you, its kind of a crapshoot at this point and could go either way. I don't even know what to tell you to treat the fish with if you do decide to QT as you've mentioned his coloration is good.
So ya, basically this is a free bump. I hope he makes it!
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