Wow - I've never seen that severe of a swelling on a wrasse before. Some fish develop egg binding due to not being able to reproduce normally in captivity, but that doesn't look like this. Fish can also develop ascites (fluid build-up) due to liver or kidney failure, but again, it just doesn't look like that. Fish can develop gas bladder issues, but if this swelling were gas, the fish would struggle while swimming. It could perhaps be a intestinal blockage, maybe the wrasse picked up a bit of substrate while feeding? In freshwater fish, adding epsom salts (magnesium sulfate) can sometimes help with intestinal issues, but in marine aquariums, epsom salts is the 4th salt by quantity, so it doesn't do any good to add more.
Jay