Your friend'll need to get him a 2.5 gallon+ heated tank and change his water 2-3 times per week religiously. The issue is hes being kept in a tiny container where he has no room to swim and get proper exercise, resulting in the fin clamping or 'shortening' your witnessing. Another contributing factor is that he has no heater, so hes cold and probably doesn't want to move around much....therefore not stretching his fins. However, unless he has a properly sized tank, he couldn't do that anyway.....
The only way to fix this problem is to get him a heater, a properly sized tank, and keep his water nice and clean.