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Yes a ten gallon is too small for a flying fox. If I remember correctly they are about 4-6 inches length and are rather active fish. IMO they require a tank at least 40-55 gallons in size.
A long tank, such as a 48", will suit them just fine. They are a nervous fish and fully capable of ramming into the aquarium glass when spooked. They are incredibly fast, hence the torpedo shape.