UPDATE: Looks like Baxter is feeling better.

According to the Rescue, Baxter had surgery on his little paw:

He has done remarkably well, and his outcome has been as expected. Let me explain, when Baxter came into Rescue in mid to late July, his paw was curled and he was walking on top of it. You can see this from his original picture. He was offered to another rescue, and it is our understanding they were told his leg needed to come off, so they turned him down. We felt he  was owed a chance to get better, and be seen by a board certified orthopedic surgeon here in Maryland, which we did. Turns out that paw was most likely stepped on or injured in that nature. He became accustomed to walking on the top of his paw. The surgery involved stretching the muscle and tendons to get the paw straightened so he could learn to walk on it. That is a very simplified version of his surgical procedure. There was no nerve damage, as he clearly has feeling in his paw and leg. We are confident he will make a full recovery.

Please help Baxter!