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So it looks like the only official reference to its actual habitat (and the damage being done to it) is an article in practical fishkeeping which i havn't been able to find. However, here is a zoology blog that has some good info on the species, and its official classification as a danio as opposed to a microrasbora as it was originally thought.
http://www.strangeark.com/blog/2007/02/galaxy-rasbora-placed-in-new-genus.html
http://www.strangeark.com/blog/2007/02/galaxy-rasbora-placed-in-new-genus.html