I've never really noticed him flaring that much and there is nothing reflective near his tank. There are some colourful jars however. I don't often use the mirror on him but I did today to see the holes. The hole is in the back tail near his bum (sorry I don't know the technical names)
Omg he loves his new tank! It's nice to see him so happy.
I thought maybe I wasn't feeding him enough as the new pellets I got him are really small. I might have to bite the bullet and get the new life spectrum ones