I agree with Maximo, sounds like it's time for a vet check. Your baby is trying to communicate with you, and smells are one way animals communicate. If something smells off, it's time to investigate. The pawing is another indication. I would not home treat, since you say you got him from a place that wasn't all that great, he might have ear mites that could lead to another infection. At the first sign of funky smell, get thy to a vet! You are definitely NOT overreacting, it's so hard to know when we are overreacting, and when we aren't, and in this way Yorkietalk can be so useful, but when in doubt, "overreact." It's better to be "too protective," than not protective enough.