Cats who overgroom themselves have what is called psychogenic alopecia- they cause self trauma and it is not always limited to the haircoat- it can involve the skin if the cat gets stressed enough.
You can try a Feliway diffuser to see if that helps- the calming pheromones are supposed to ease the cat. There are anti-anxiety medications but I would not jump to that right away as it is usually a life long or long term medication.
If you are ready you could look into a new friend for your kitty. Would he groom a stuffed animal instead?
I have bottle raised many kittens- and even though a human can provide excellent care they cannot teach them things that a momma cat can- so I have noticed that bottle fed kittens can be higher maintenance than a typical cat- not always but sometimes. So knowing he could have different emotional needs could make a difference in your pet selection/time process.