try flow - if the polyps don't get enough flow, they will die like that. If you don't see any bugs at all, and if you also don't see much polyp movement around there b/c of low flow, then that's prob it!
red bugs only affects acro's, not birdsnest
its more likely lack of light as mentioned above. certain birdsnest will grow so thick that the bottom starts to die from lack of light, which is normal. you can always frag it up so the bottom/inside gets more light, but it won't be a nice ball shape anymore.
I'm pretty sure that this is normal with this species; it tends to cut off flow or light to lower portions of itself once it reaches a certain size, and then it just breaks off eventually and shatters on the reef, propagating frags everywhere.