Generally speaking, fish have a zone that they typically stay in (like mid water, top or bottom dwellers), but there are some that enjoy the whole entire tank. I'm not sure about parrots though. Since I can't see the fish, I'm going by what you're telling me. It's possible if you've noticed bullying that it could be fin nipping, but I can't say for sure what's wrong. If it is fin nipping, it's possible that the fins may not regenerate. Just keep the water clean and continue with the pima/mela -fix treatments for a little while.

Your water is likely cloudy from the ammonia because the ammonia level should be 0, and 0.25 ppm is almost there, but will still cause cloudy water. You will always have bacteria in your tank... they're beneficial bacteria though and help with the cycling of your tank. It's possible that if you didn't have fish in your tank for a little while (longer than a day) that your tank is cycling again, and from what I recall you had 2 fish before and now have 3. That will also cause your tank to cycle again. The cloudiness should go down as your water quality improves.

When Jumbo goes to the top, does he appear to be gasping for air? If so, you'll need to add an airstone as the water is likely low in oxygen. If he's not, then I'm not sure what he's doing at the top. Again, I'm not sure about parrot behavior specifically, just fish behavior in general. Hopefully he gets better. It definitely wouldn't hurt to add an air stone as water is generally lower in oxygen than air, but generally speaking fish have no problems getting enough oxygen (their gills are so awesome), so it's just a suggestion, not a requirement unless he's gasping.

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