Bully and manager are friends

There is a bully in my team he sometimes public shames me, micromanaging, telling me to not side with specific people, being secretive about his work, talks to my manager in private multiple times per day, very gossipy guy, being nosy with my work and others work. He also resorted to personal attack when I provided a different design idea. He is my masnager’s friend and seems like a little bird whispering to my manager everyday which makes me feel very uncomfortable workng in an open environment. I cannot take another day working here as his behavior disgusts me and my manager has also distant himself from me which I have no idea why. How do I deal with this type of working environment? It is very toxic for me and Im losing sleep plus emotionally drained. Update: Spoke to my skip, there are couple options within his team for me. Also previous team welcomes me back but just have to go through the interviewing process. Trying to figure out if it makes sense to go back to old team or consider another team under my skip.