You're not talking about extensive scale loss, then, are you? Just those little spots? And it's not increasing?
I would not personally have bathed him in Betadine, just applied some diluted Betadine to the areas in question.
What kind of antibiotic cream did you use? That's possibly what caused the loss of the scales, & they will likely stay gone, like scar tissue.
(& yes, he IS a cutie!)