Might need a better photo, but it looks like he could be shedding his exoskeleton. Hermit crabs shed the hard shell on their legs and head in order to grow, and it looks a bit weird when they do it.
Can't tell much from the pic other than it looks like a Scarlet hermit. Hermits can usually pull themselves completely inside their shells unless they're getting too big for the shell. Do you have other shells for the hermit to change into?
When hermits molt, they molt like a person would take off a pullover sweater. They can back into their shells to push off the old exoskeleton. It's usually a good idea to leave them alone for a few days to a week. If they're dead, something will eat them for you.
Deffo dead. When i removed him from the tank the body just fell out! Very odd. Almost like a caclerous layer built up over the shell entrance with its legs sticking out
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