Dropsy isn't a disease any more than sneezing is in humans. Dropsy is what is properly called oedema, i.e., abdominal swelling caused by an abnormal accumulation of fluids. Typically it is a sign of infection, either by viruses or bacteria. Aquarists often associate the symptom with "organ failure" in some vague way, but fish health text books tend to put the accent on infections or some type of adverse environmental condition that means that the osmoregulatory system* can no longer work.
In any case, dropsy rarely comes out of the blue. Fish maintained in good water and given a balanced diet rarely develop the symptom. By contrast, dropsy is very common when fish are kept poorly. The classic examples are goldfish in bowls, mollies in freshwater, and Malawi cichlids in tanks to which aquarium salt has been added (this is called Malawi Bloat).
Associated with dropsy are other symptoms such as lethargy and loss of colour. Fish that are repeatedly getting things like finrot are also more likely to develop dropsy since at least some bacteria (e.g.,
Aeromonas) are responsible for both.
Realistically, when a fish develops dropsy, it's dying. I have yet to see a small fish respond to treatment. Big fish like koi may recover when treated with antibiotics, assuming the cause is bacterial, but a viral case will of course be impossible to treat. Improvements in living conditions may allow the fish's own immune system to put things right, but this seems to me very unlikely where small fish are concerned. So for all practical purposes, if a fish develops dropsy, it should be painlessly destroyed.
Do bear in mind not all abdominal swelling is dropsy! Constipation is very common and produces similar symptoms, though usually not with the erect scales on the flanks. Goldfish and (most) cichlids are very prone to constipation because they are herbivorous, at least in part, but rarely given enough fibre in the aquarium. Also, a few fish swell up naturally from time to time. There are some killifish that do so when spawning, right down to the erect scales, and things like gulp-feeding catfish can look very swollen if allowed to gorge themselves (not something I recommend, even though they may do so in the wild).
Hope this helps, Neale
*The system that balances water and salt inside the body, equivalent to our kidneys.
What are the early signs of dropsy?
I'm just asking.