This is NOT healthy and is about to be amputated. Amputated genitalia on males is not that uncommon. They have more reproductive procedures done than females do.
Females reproductive systems are very complex and spaying or any surgical procedures on reproductive organs are rarely done on them because it's so invasive and damaging. There has to be a medical reason for a surgical procedure to be done on reproductive organs on a female like cancer and even then it's debated on very heavily before doing it.
But males, have neuters done routinely and genitalia amputations almost as commonly. They recover just fine usually, and continue to have a thriving happy life.
Things to watch for , discoloration, out for extended periods of time with out being retracted, severe dryness. If it's dry it can get stuck while out, you can use some Ky water soluble gel on it to help it go back in. Buttttt if there is any dark discoloration he needs to goto a vet.
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