I have had a 20 gallon cichlid tank for around 1.5 years. I originally had 3 fish and two died. I found them marked up red and bluish patches and gulping air. Later they were dead and all fins were chewed off. (This is my first tank. I was worried that the tank wasn't right chemically- I have been testing more closely.- so I left just one healthy fish to see what happened before getting more) I decided to get a new fish and add to tank. He has been fine for a week. I noticed the original fish is very territorial and chases it around a lot. Now I am suspicious that he is killing it and had killed the other two. This fish has what appears to be bite marks on it and a cloudy eye. The chemistry is good, temp around 72-80(fluctuates despite replacing with better thomometer) and the PH is around 8.2
Am I just not careful enough or could the one healthy fish be killing the others? Now I am not sure how to treat him- i put him in a bowl with the water from the tank, put a spare thermometer in there to regulate temp and I am going to the fish store when it open to see about a small tank and a pump to setup a hospital tank. BTW- anything I should consider when setting up a hospital tank?
Any help would be appreciated- I really want this one to survive- its odd that the one original fish is so healthy.

