Thanks Ruski.
Here is my thinking so far. . .If the fish was mis treated, the fish should have passed by now. Although malnutrition can be a contributing factor -- that is the fish's ability to withstand adverse conditions -- the primary problem seems to be poisoning. At least I would put poisoning ahead of a pathogen problem, injury, or disease.
Coastal collection of NSW has a very high risk factor. Beside human pollution, there is run off from the land, which has fertilizers and more human pollution. I understand that you don't see or know of boats in the area, but that is only a small part of where pollutants can come from. For instance, boating many miles of up/down the coast can affect the water you get, depending upon currents; pipes that carry rain water many miles away can affect the water quality where you might draw it from; industry many miles away can affect water quality in a very large coastal area; etc.
Our marine fishes are very sensitive to human pollution and it takes very little to drive them away or kill them. Let me ask another couple of questions -- where you draw the NSW from, are their ornamental marine fishes in that water? Can you see reef fishes swimming around in the water you are using? If reef fishes are in the water you are using then there is a good chance it doesn't contain pollutants. However, just because they aren't there (that is, it could be an area where reef fishes don't live, anyway) doesn't mean it is polluted. Is there any 'delicate' marine life forms in the water you are collecting? Do you know of any water quality tests performed on that water? Have you ever looked for any such tests?
The area I live, in Southern CA, we are offered the use of NSW too. That water is collected from the ocean surface more than 25 miles off shore and it has been tested thoroughly for contaminants. At the outset, the water was polluted! But it turned out that the pollution was from the boat that was doing the collecting! Collecting it by boat has to be handled carefully so the boat pollutants don't affect the water.
In other cases, like in South Africa, the water is collected by pipes with openings far off the coast. That is sometimes done by marine (public and private) aquariums, that are built near the ocean. Batches of that water is tested to verify they are pollutant-free.
So, you can see that collecting coastal water isn't really very safe. There is still the fact that we don't know (maybe?) how this particular fish was collected. Some are collected with cyanide which gives them an exposure to poison which has the same effects as if the water they are in has poison.
I just want you to be aware that if poisoning is the problem with your Tang, then there will likely be little to no recovery. We can hope that the fish will deal with the problem and come out of it.
Do keep us posted. :fingerx: