Fish scared to death??

olemiss reb

Molon Labe
I keep a fimbriated eel in a 90 gallon species tank and add damsels for a splash of color/snacks. The damsels thrive until there numbers decline to less than 10. When there are less than ten left, they quit eating and are scattered throughout the rocks, whereas before they would stay in a large group and feed heartily. Do the damsels sense their impending doom at the mouth of a large piscivore and quit eating? My cuc enjoys the snack but I would rather the eel have them. I don't have much experience with damsels but I was under the assumption that they were pretty tough.
 
I knew the eel would eat them, that was the plan. I was wondering why they quit eating/began dying when there numbers dwindled. They've been fine until there numbers drop below ten. This cycle has happened a few times. Figured they felt safety in numbers but wondered if there could be something else i was missing.
 
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