Sorry for digging up an old thread, but I would like to post the "conclusion." After I treated the presumably bacterial infection with daily tea baths for a week and a single application of diluted tea tree oil to the back toes, they stopped shrinking and the tips seemed to heal, but they stayed stubby and did not show further signs of regeneration for about a month.
2 weeks ago I moved and decided to get a new tank, this time I was specifically looking for a glass tank because of this comment:
"Although we successfully use plastic containers, they must be kept very clean. Plastic tends to support the growth of a bacterial scum along the bottom and sides of the container. We have found that if this scum is not cleaned off periodically, the axolotls will develop sores on their toes and feet that will not heal. Instead the skin retreats up the leg and the toes eventually die and are sloughed off. If this happens put the axolotl temporarily into a glass bowl. Add a few drops of mercurochrome (enough to tint the water a pale orange) to the water as a disinfectant, and change the water frequently. The axolotl will heal nicely, and the toes will probably regenerate."
found on
Guide to Axolotl Husbandry.
I used a new filter but kept the sand, rocks, and marimo from GDs first tank, and he moved into the new 15 gallon glass tank a week ago. I did not treat with with mercurochrome or anything else, because it seemed the infection had long since died, but the toes were not regenerating. I noticed nearly an immediate change in appetite and activity in the new tank (both increased) and within one week the toes have regenerated their length and are very close to reaching their full length. In just one week they tripled in length.
I am not sure exactly what caused the toes to rot away, what was hindering their regeneration, or why they regenerated so quickly after 1 week of being in a new tank after a month of no signs of improvement, but as this article suggested after not healing I a plastic aquarium when GD was transferred into a glass aquarium he regenerated quickly. There are most likely other factors at play, however.