MY red fin fairy wrasse was super peaceful has a mate but last few months he is puffed up swimming 100 mph. Does not seem to bug anyone no one is afraid of him but he dive bombs the Mrs and other fish all super puffed up. Smashes into the sand and glass.
Yeah, my Filamented Flasher Wrasse does the same. Like Jekyll and Hyde he'll be normal one minute then just puff up and flash and start dive bombing like you described. At first I thought it was aggression, but once I saw the Firefish not hide and just brush him off I knew it would be okay. I noticed he does it quite often immediately after eating...maybe a show of happiness?
The fish is flashing they mostly do this at dusk. The red fin is one of the more aggresive fairys along with the bluetroat and whip fin. I try to avoide these when mixing wrasse for this very reason. I had a bluetroat that would do this everynight and eventually took out my other wrasses.
Hmmm he definitely does this more right after eating. No one pays any attention to him the only fish he really hits is his female but she seems ok. One time my clown went at him because of it but 99% its just him insane.