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Thank you Dr. Dan! So would applying Bacitracin be a good idea? How do you think this may have been caused? Is the air clipping off his nose and the constant sneezing all a part of the infection? Do you think it has anything to do with him constantly nibbling on the cage wires? Thank you.
NO bacitracin is exactly the medication I was talking about! If ingested that medication will cause a fatal diarrhea.
The constant sneezing is part of the infection, the constant contact with the white stuff and the rubbing of his nose with his feet (you may not be seeing it) is causing the hair loss. The rubbing on the wires may be related but this is a very common infection and many rabbits get this without any trauma to the nose.
FYI I have to take a road trip back home if you have any more follow up questions I will respond but I'll be off line for about 8 hours.