My bunny had this same thing about a year ago. We never really figured out what it was. We treated it as ringworm with topical creams but penny just would lick it off then it started making her hair fall out and made it way worse. We ended up getting her fixed and while she was in the surgery they shaved her around the area and while she was recovering it pretty much healed. Now this is back and she has two. It's a circle which makes me think ring worm. The skin on the edge of the circle is dry and flaky but not red. The skin in the middle of circle is actually hair that's growing back. I wanted to let it play out and see if it went away on its own because we made it so much worse the first time but now there are two. Please help me.