Looks viral or perhaps tumor but you need to for sure get a vet to get a biopsy or rule out disease cause or cancer.
DO NOT treat that with antiseptic or any other liquid like betadine or hydrogen peroxide before having a vet diagnose this. Anything that can be cytotoxic (destroys cells) can cause more irritation or inflammation. Make an appointment monday and find out what it really is.
For now remove all substrate, dry out the cage and put this animal on paper to keep it sanitary.
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