The size of the tank is better; if possible you should go back to using the type of substrate you were using before (of course expanded with treated water). The problem with what you've got in there now is that it can cause serious issues if a large chunk is ingested, and they WILL eventually ingest bedding if they are in it long enough. With the cocofiber, it's something that passes through the system easily so it isn't a big issue if they accidentally grab a mouthful of it.

The bloating does look a little better; still seems kind of bloated though. Like Grif said, long-term low temps and exposure to untreated water can cause serious damage, so you may be looking at long lasting problems for this guy.