Looks like straightforward damage to the mouth, likely through trying to dig in a tank with a sharp or coarse substrate. Fighting is another possibility, if this Mogurnda is being kept with other specimens of its own kind. Review conditions in the tank, and if you want, treat for Finrot AND "Mouth Fungus", a kind of bacterial infection despite its name. Fairly brackish conditions might also be used, and while Mogurnda doesn't need brackish water, it tolerates salt well, and brackish water sometimes has a tonic effect on fish like these that look a bit moth-eaten.
Cheers, Neale