I once lost a beautiful newly acquired powder blue to a much smaller powder brown who was already in the tank for some time. He got pretty beat up and when we finally managed to get him out, he survived for a while but never really recovered. My advice to you would be remove one of the two immediately and place it in a quarantine tank. From there, you can try a few things:
- if you manage to remove the hippo, let it be grounded for about a week until the powder blue sets in and try placing it back in the tank. Because the Powder Blue is bigger it may then hold it's ground. You can also try change your rock work before adding the hippo back so it thinks it is a new corner of the reef where it doesn't has its territory yet.
- if you remove the powder blue, get it fully recovered and think about getting other tangs and add them simultaneously, it will divide the aggression between them and eventually the hippo should give up.
Tang aggression can be nasty and sometimes unpredictable. In a past tank my hippo and Naso didn't care about the Zebrasomas and Acanthurus nor the other way around. Now in the new tank I have a purple tang and just added a hippo which was getting beat up (even though it was not too bad as I've seen between Zebrasoma x Zebrasoma or Acanthurus x Acanthurus), so the purple has been grounded for about a week in the QT. Let's see how it plays up.
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