It looks like to me that his tail was completely bit off at one time and is just now growing back. This makes it look like it is shorter because it is growing back in proportion. I don't know if the eyes are that much of a problem because the fish narually has iredescent eyes. I have noticed that the key to keeping these is providing them with plenty of food. I have had one for about two years. Mine tends to hide a lot so hopefully yours will find a safe hiding place in your tank and recover. I guess you just have to wait and see but I think he has a fair chance. Also mine has learned to eat the seaweed that I feed my tang...it is definately entertaining to watch.