Hermits generally eat algae from the rocks,and leftover food. Are you certain he died and did'nt just molt? The molt looks almost exactly like what you would imagine the crab looks like...minus the back portion.Keeping extra shells in the tank so the hermit can upgrade as he grows is important.It is also important to all inverts,that no copper or other medicine ever enters the tank.They do not do well if levels of amm,or nitrates..or even phosphates are high.Specific gravity needs to be stable...and is best if kept around 1.025. PH and Alkalinity of the tank is also important. Do you know your tank's parameters?