I missed your other posts; why must he be confined? is he the kitty with the luxated patellas? If not, how big is your cage? If he doesn't have to be confined such that he's not really able to walk around much (but just kept from running all over the house), would it help to maybe have a bigger cage? What type of cage is it? Can he see out of it easily? Can you sit it out in the open so that he can see you and doesn't feel so isolated? Have you thought of trying some Feliway Spray to help de-stress him? (spray it in the cage - make sure it's completely dried before putting cat back in).....or a Feliway Diffuser?
One of my kitties got a scratch on her nose once, a pretty deep one (one of the others must have scratched her good). I just applied Neosporin to it twice a day and kept a close eye on it, checking for redness, pus, etc. It healed nicely.
I would maybe give the vet a call tomorrow and ask if there is something you can do to help calm kitty......maybe a very mild med that will help kitty relax? I suppose if he keeps rubbing against the cage like that, he might need to wear an e-collar, particularly so that he doesn't make cut on nose worse/not allow it to heal.