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Check all your water parameters again (pH, KH, GH, TDS, Temperature)
Dwarf Shrimp Water Parameters ? DiscoBee
Water parameters should be in this range
PH: 5.8–6.4, KH: 0–1, GH: 4–6
TDS: 100–180, Water temp: 70-73F

I have heard of pitting/shell erosion due to too acidic water, but from what I've heard, it's not nearly as common in shrimp as in snails and the erosion doesn't happen in well formed circular patches. So infection (bacterial) sounds more likely.

Check ammonia, nitrite, and nitrate in case those may lead to a weakened shrimp making it vulnerable to a infection.

Did the shrimp have this when you first got it (came already infected from seller)? Or did it just happen?
It is a crater right (concave hole)? and not just discoloration?
Did the crater start off smaller then got larger?

Take a look through these links for some more info.
Shrimp Disease? Shell rot? - Care, feeding and breeding - The Shrimp Spot
I commented here about the aforementioned Black Spot Disease and what might cure the infection

More info on shrimp diseases (focus on Black/Brown Spot Disease, from what I hear, there can be erosion without black/brown pigmentation in the infected area)
Shrimp Diseases and Diagnosis - Shrimp Health & Care - Shrimp Keepers Forum
Database of shrimps diseases, symptons and treatments

I do not know if the infection is contagious or not. So I don't know if the shrimp should be separated/quarantined ASAP to prevent infecting other shrimp or not.
I don't know enough to say whether the infection came from the seller source or just originated in your tank or not.

I haven't seen any exoskeleton defects like this after molting, so I doubt that is the case. But if it somehow happens to be so, after a molt, the shrimp should have a better exoskeleton on the next molt if all the water parameters are fine. But again, I think there may be more reason to believe it's bacterial.

I am no expert though, just giving the best information that I can. I HIGHLY suggest posting over on The Shrimp Spot forum or maybe even Shrimp Keepers Forum to get more expert advice/opinions. You can try asking the one who sold you the shrimp as well, but don't always expect them to give you honest answers.

704 Posts
Thanks both. I will check the water params again for this tank. This is the only shrimp got issue and I wasn't sure this guy had it prior or after join the tank. I think I will separate this guy into the large size marina breeder box just in case .

Ok @WaterLife, I just went check some water params

Gh: 5 drops to ish green
kH: 1 drop to light yellow (never see blue color)

pH: 6.4 (seem like a bit high, I will throw 1 more IAL to help lower)

A: 0
Nitrites: 0
Nitritra: 10ppm

Temp: 72

I look careful at that shrimp, on that side .. it does look like the skin about going to fall out but still can't fall out .. Like @nightshadebel said could be bad molt

What do you think?
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