If it's in a 40 gal then I can understand that the food is simply running out. It'll certainly be happier in the larger tank you're planning. It will not accept any prepared foods? Have you fed the LRS herbivore frenzy? You could also try caulerpa, especially the feathery type. They are strange fish and I always have had problems with them... just not sure why. It's too bad because they are super cool and fun to watch.
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