i did dip it in fresh water for a second to remove the fire worm that was on
Bingo. You don't want to dip them in fresh water. It takes the flesh off them. You should get something like Revive or Coral Rx to use for a dip and mix it with tank water...after you have acclimated the frag.

The fact it is extending polyps is a good sign and hopefully it will recover.