Definitely don't resort to using tap water, since most city water sources contain measurable amounts of chlorine.
While I don't have any answer why you're seeing sudden changes, I can say that the photos of the retracted corals look exactly like what I experienced when my phosphates and nitrates were at zero. Corals need at least some of these nutrients to be healthy. Once I got my PO4 and NO3 levels up, they've been much more extended and colorful. I now keep NO3 around 4 ppm and PO4 around 0.05 ppm.