+1 on the above. Get rid of the affected branch and a bit of the clean tissue. Leave it in a moderate flow area to prevent algae growth on the bare patch. Birdsnest colonies have a tendency to go off like a lit match once they start receding like that. Just like apexifd, I lost a canteloupe sized colony in a matter of days because I neglected to trim off the dying branches.
But don't worry, it grows back fast. I kept a 1" branch (more like a stick) of the original colony and it's now a 6-7" bush in only 5 months. Moderate to high flow, lots of light and you're good to go.
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