The animal has shell disease. This is often fatal. Large male O. scyllarus are particularly prone to develop it, but it can occur in even young O. s. I have also seen it frequently in old male G. ternatensis and occasionally in large G. chiragra. A different shell disease (at least it looks different) occurs commonly in Hemisquilla and in some squillids..
The initial infection is probably due to a fungus, but secondary infections set in and accelerate the erosion of the cuticle. Eventually the cuticle is penetrated and if the animal does not die outright, it will eventually fail to molt successfully and expire.
I cannot recommend any treatment using medicated dips or additions to the water. Stomatopods are sensitive to a variety of medications typically used on fish - particularly copper based compounds.
I have had some luck helping animals to recover by taking the following steps:
1. Provide the best quality water possible. This means low nitrates and high pH and CA. Frequent partial water changes can help with this. You also want the organic content of the water to be as low as possible. A good skimmer helps.
2. Provide a long, dark burrow. I use back pvc pipe.
3. Drop light levels as low as possible. This may be a problem if you have a reef tank. O. s typically live at a depth that the ambient light is bluish and not high intensity.
4. Provide a good diet. The animal may not have sufficient strength and stamina to break snails, but if it will take shrimp or krill, treat its food with a good quality nutrient solution.
5. UV sterilization may help. It certainly will cut down the chance of future infection or the spread of the disease to other stomatopods.
Shell disease occurs in the wild as well as in the aquarium and often I see animals for sale that show the first signs of the disease - small orangish patches usually on the dorsal surface of the carapace, thorax and abdomen. Recent wounds to the cuticle may be the first points of attack, but the disease can develop on what appears to be healthy cuticle. Shell disease may be more common in large animals because they molt less frequently.
The only "cure" is for the animal to successfully molt a couple of times. If the cuticle is penetrated, the first molt, if successful, will result in patches of discolored and often wrinkled, but non infected cutlcle. Subsequent molts will repair these "scars".
Good luck.
Roy