first off "coral bark " is a generic sort of name ..the early version is the sango kaku if I am not mistaken ... there are other cultivars ..newer...that are also designated as "coral bark" If yours was marked Sango Kaku it is most likely mislabeled ( very comon).. there may be some weeping coral barks but I am not aware of any but I am NOT a coral bark freak so I may be wrong and there is one or some!!... others here should know....I do NOT think envormental conditions could cause this ..I am pretty sure of THAT!!!Is the bark on the new shoots bright red??? if not then you definitly have something else ..sounds more like a omurayama by your description but it will have GREEN not red branches...post pic if you can figure out how ( good luck) and /or give better description ...David

the tree is ENCAPSULATING the wound ....https://duckduckgo.com/?q=tree+encapsulating+wound&t=ffcm&iar=images&iax=images&ia=images the cambium layer ... is the green.. just below normal bark.. its the vascular system of the tree... moving water up.. and energy converted from sun.. down to storage in the roots ... https://duckduckgo.com/?q=cambium+layer&t=ffcm&iax=images&ia=images if that makes sense.. its not surprising why your lacked leaves last year.. as a great percentage of the cambium was destroyed ... it will continue to heal ... in tree time.. might take a decade to finish the job.. and you have to hope... in the meantime.. that the interior wood doesnt rot ... it might just be easier to start over.... plant it properly ... and not have to worry about the rot potential .... especially if it is close to the house ... ken

I was afraid that might be the answer. There is a small JM up the street with the same exposure that seems to be doing well, but it's the dark variety. As a neophyte gardner, the contradictions I get from different nursery staff and especially nursery literature is very frustrating. Which brings up Mike's point about watering. Yes...I've paid strict attention to watering. However depending who I talked to last, sometimes I think I'm overwatering. I talked to two guys from the same nursery (a real nursery, not Home Depot). One guy says "stick your finger down into the soil. If it's cold and moist, you don't need to water". Another guy (who I've actually seen doing Bonsai cuttings) went off on a 5 minute spiel about how the soil may be dry at the surface, but the roots may have moisture available below, and should be encouraged to go down for it. My only guess is that the first guy was thinking (appropriately) about a newly planted tree, while the second guy was thinking of an established one. Yet a third guy thought that the die off was probably do to the late spring rain we received, and I think "Am I killing this poor thing with kindness?". So, I leave the nursery shaking my head, more confused then when I arrived. I've always wanted a JM but thought the exposure and my skill level probably forbade it. I think I should have stuck with that wisdom!

dig a few holes.. with a hand trowel .... in the gob planted.. and in native soil ... AND FIND OUT ABOUT MOISTURE ... 3 to 6 inches down .. and adjust watering accordingly ... why guess ... skip any further fert .. its stressed.. not hungry ... [and magical transplants goos] i really dont care about a little leaf damage in july/august ... its a deciduous tree .. and besides.. they are still green.. so perfect or not.. they are still doing their job ... ken