Neigh,
First, welcome to the forum. Sorry to hear your having troubles. I am going to post a link to a very good article obout HITH (hole in the head) and Lateral line disease
HITH/LLD
I have a fish that came down with lateral line disease from being stressed. The 135 gallon tank he was in split a seam and there was only a few inch's of water left in it when my wife found the tank like this. For over 6 months I tried almost everything on the market to no avail.
One day I was cleaning out my storage room and came across a bottle of Dick Boyds VitaChem. I was reading the label and saw it was recommended for HITH and LLD. I figured....why not!!!!!
Within 4 days the wounds that this disease caused had started to clear up. In 10 days time the fish was completely healed!!!
I believe several factors come into play with HITH and LLD:
1. Stress
2. Poor water quality
3. Diet
Do you feed you oscars feeder fish? If so it may be the root cause of your problem. Not so much that the feeders were diseased, but a diet of strictly feeders will NOT supply the needed vitamins for your fish.
Poor water quality can lead to stress so you actually have a double whamy here.
Most fish that get HITH do not suffer death as a result, therefore I would venture a guess that there was a secondary infection that did them in.
My advise would be to start doing water changes to the tune of 50% every couple of days. C/S American cichlids can handle this amount and more!!!! Do not worry if your water change amounts were not this high as the fish can handle it.
I, for one have my doubts that carbon usage is a culprit in causing this disease, but if you use it...STOP!!! It is reported that carbon removes much needed trace elements from the water that fish need and this deficiancy then leads to the disease. No sense in taking any chances. I do not use carbon in any of my tanks and with a good water change schedule you should not have to to have crystal clear water.
I would try using a vitamin suuplement to halt the spread of the disease, but once a fish has HITH there is no way to heal the wounds. They will be with the fish for the rest of it's life.
It is unusual for HITH and LLD to to occur simultaneously, but I suppose it is possible. I would start the water change schedule immediately as well as the vitamin supplements. You may also want to get a medication that has Metronidazol as it's primary agent. It would be most beneficial if you could get straight Metronidazol in powdered form and add this directly to your tank in the recommended dosage. The problem with medications that use this as only one of it's compounds is it becomes diluted many times over once it hit's the water.
Check with your veterinarian and see if he/she will give you some. If not than go ahead and use any of the various meds that have it.
Hope this helps and keep us posted.
CM