That sounds to me like it might be HIH, which is actually a mysterious illness. There are ideas of how it happens, but nothing is certain.
It may also have been
ammonia poisoning, which can appear as random red spots and streaks (it damages capillaries).
How long have you had the fish? What are they being fed?
I notice now that you don't know what the
nitrogen cycle is. Give me a moment to dig up the article on it.
smacking self in forehead. Can't believe I didn't think to check aquarium info on my first post. http://www.fishlore.com/NitrogenCycle.htm
Okay, here it is.
The basic idea is that fish produce ammonia as a waste product. There is a type of bacteria that consumes ammonia and produces
nitrite as a waste product. There is also a type of bacteria that consumes nitrite and produces
nitrate as a waste product.
Ammonia is highly toxic (ever sniffed the stuff? If you haven't, don't. It's enough to drop a grown man to the floor. Fish have to actually swim in the stuff)
Nitrite is less toxic, but still dangerous.
Nitrate is only toxic in large quantities.
It takes time for the ammonia-consuming bacteria to grow, and then, after that, it takes more time for nitrite-consuming bacteria to grow. The entire time is usually around a month (though there are ways to speed it up).