Yes, upside down is bad for them. Their internal organs put pressure on their lungs and make respirations very hard. I would guess his color change was due to hypoxia. There may or may not be permanent damage depending on how oxygen deprived he might have been, or if he aspirated on any water.

I would advise getting him checked if completely normal activity and appetite do not return quickly, or there are any signs of respiratory illness.
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freewebs.com/wichitafallsreptilerescue

groups.yahoo.com/group/HornedLizards

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