continued shrinking of the colt could be a sign of illness or shock (as defined below).
the illness is imo often from an infection of some sort. bacterial infections would quickly lay waste to the coral ime so i cross that out. the coral flesh would be sloughing off and melting away.
viral infection (just suspicions, no proof of viruses) has the wasting away effect. i usually treat such 'infections' (as i define them) with lugol's or just time/stability.
shock can result in body fluid loss thus causing the coral to shrink. this shock can come from extreme temperature, lighting, or chemical changes. injury is another possibility but usually very visible.
usually, given time and protection the coral slowly heals itself back. if you haven't had any obvious changes look for the subtle/hidden ones; e.g. seasonal changes of temp-winter/spring, salt creep falling on the coral, water flow changes from maintenance (lack of). hth