Poor babies!!! Those darn things can be so tough to treat. I found this link and it was kind of good:
Hot Spots: Acute Moist Dermatitis in Dogs
I would think tea tree oil would sting bc it's so astringent, but I could be wrong

. I hope they get better soon! I wish I knew more about this, but I just don't. Aloe can be quite soothing and healing. And Peace and Kindness from Chris Christensen apparently works miracles on *all* skin issues, so I wonder if that would help the babies? Hugs to them

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