Hi Kitty Whiskers. I'm so sorry about your girls. :(
I agree with OFL that at this point, it doesn't make sense to quarantine. In fact, it probably wouldn't have made sense to quarantine in the first place because if the whole tank is sick, it makes sense to treat the whole tank.
Bifuran is the same as Furan-2, more or less (it's nitrafurazone, plus another ingredient). This is an antibiotic so it will most likely have killed your beneficial bacteria and your cycle. When you are finished with medicating, you will need to do a mini-cycle where you monitor the ammonia and nitrates on a DAILY basis. You may want to add a bacterial supplement such as Seachem Stability.
I think what may have happened to your girls is ammonia poisoning. Although your tank was cycled, it had only enough beneficial bacteria to handle the current bioload. When you added more fish to the tank, that bioload went up and the beneficial bacteria couldn't handle it. Don't worry, it's a common mistake.
Regarding the otos and quarantine. It is usually best to quarantine all new fish before adding them to the display tank; some books and articles even say to quarantine up to 6 weeks! What often happens is the new fish may be carrying pathogens that they themselves are resistant to but when they are introduced into the tank, your current fish are NOT resistant and they are the ones that get sick. Thus it can be that all the old fish are wiped out and the new fish are just swimming around happily. It's weird, I know, but this has happened to even the most seasoned aquarist who doesn't quarantine. In some cases, the poor aquarist loses expensive and irreplaceable fish when introducing a common fish like a guppy!
Your tank isn't overstocked as long as you keep up with water changes and monitor water quality.
Can you describe the current symptoms of your fish now and which fish are sick? Also, what is the name of the current med you are using? That will help us to know how to better advise you.
Don't be discouraged. These things happen to everyone. Fishkeeping is an ongoing learning process. Hang in there, hon.