This baby should have had heat. Either a heating pad, brooder or something that would provide warmth. Even with the down they still get chilled very fast and should be kept in a enclosure that provides heat until they are almost fully feathered.
It's hard to say why he died, from being chilled, stunted, the formula being too thin or not warm enough, formula to hot and resulted in a crop burn, something else or a combination of them.
Was he housed with the cockatiel 24/7? The bruising could have resulted from the Tiel or possibly another trauma (such as a fall).
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