Jake looks miserable. How did it happen? Was it started as a small area of hair loss? What kind of behavior correction medicine did you use? Did you look for side effects of the med?
If the timing of the problem conincides with the behavior med, it might be a reaction to that med but he doesn't have the problem any other parts of his body, right? If it is a reaction, it should be all over his body...
Is the bleeding result of his scratching? If so, you might want to put on a Elizabath collar. Anyway, I think you want to consult a vet dermatologist for treatment. I am so sorry for both you and Jake...