[cypher]

I totally agree it's not a good idea to use home remedies, listerine & witch hazel, even diluted is far to strong for any ham let alone a dwarf, you need to be very careful even with hamster mite treatments you can buy yourself as these can be toxic if not used properly or used when they aren't the correct treatment.
It sounds as though you don't actually know for sure what the problem is, if it was mites you wouldn't see them, it sounds more like something has got into the cage & is having a good nibble on him or just aggravating him.
I would just clean the cage out & stop treating him for now, if it continues take him to your vet for a correct diagnosis before doing anything more.