Update:
I have removed the child from my daycare, and the parents were totally shocked. Even after multiple discussions about his behavior! LOTS of tears and denial. I told them he is welcome to return, but only with a child psychologist shadowing him! I don't think they will go for it as they really don't believe their child did the things he did here. Apparently, according the them, this behavior only happens here...Whatever. They have often referred to their parenting technique as "hands off" so that may have something to do with it. Poor little guy, I will worry about him for a very long time!

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