Loss of appetite is always cause for alarm. I can't comment on its visual appearance as I'm not familiar with balloon forms of fish.
The usual diagnoses/medications for cichlids with loss of appetite are:
1. praziquantel, to treat tapeworms
2. metronidazole, to treat internal protozoa
Early treatment is important - I often dose medicines once fish show difficulty eating.
All the best with your fish
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