I am so sorry that little Cody is ill. But think of it this way: If it is true and the only symptom is hair loss, why do anything? After all, people go bald and you wouldn't love them any less because of it.
In the grooming business I have seen dogs like this, I just never knew what the condition was. And at least one of them was a totaly bald Pomeranian whose only hair left was on the legs and head. And yes, people wonder about why he looks like that, but it did him no harm and he was still as sweet as ever.