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HI, this is Dr. Jeanne Smith. I just came on line and the moderator reached out to me to answer you. I'm sorry it took so long for you to get a response and I'm sorry to hear about your lovebird. I'll do my best to help you with this. I'll be right back, I'll be typing.
Definitely if your bird was showing feather coat problems like patches of down showing or bald areas, the ongoing molt wasn't a molt but evidence of feather damaging. It sounds like now it's progressed to self mutilation. This is possibly a very difficult thing to resolve in a lovebird. You're going to need to find a good avian veterinarian, ask around among bird stores and bird breeders in your area to find a recommendation. Many things cause feather damaging in birds, not as many things cause self mutilation. The most common cause of self mutilation I see is an internal fungal infection, usually aspergillosis, but it can be caused by viral, parasitic, or bacterial problems, too. Lovebirds in my experience are usually the most difficult species to figure out and stop from self mutilating. I don't want to discourage you, I just want you to know this may not be an easy diagnosis or treatment. Right now, until you can get him seen, clean the wound with hydrogen peroxide one time to flush out any debris and bacteria, then flush the wound well with clean warm water. Blot it dry and put a topical antibiotic cream or ointment on it. Make sure the topical doesn't have any pain relief medication like lidocaine or hydrocortisone, those are toxic to small birds. Make a small Elizabethan collar for your bird to protect him from himself. You can use a yogurt or sour cream container lid. Cut the diameter down and cut into the center of the disk. Then cut a neck hole, about 3/4 inch diameter should be good for a lovebird. Then overlap the cut edges to make like a funnel with his head inside the funnel and tape the overlapped edges inside and outside. Trim the collar so that he can just barely reach the edge of the collar with his beak. Make sure he can reach his food and water by keeping the bowls full. Try to get him seen as soon as possible.
You're welcome. I hope you're able to find his cause and effectively treat it.