Knowing the cause would be very helpful and I hope someone solves that mystery.
In the mean time, if it were my tree, I would lop off the damaged half of the tree. The peeling is happening in multiple places on the left branch but I don't see any on the right in the photo. After removing the left side, I would follow
Sepp Holzer's "Bridge Grafting" instructions to close the wound using scion "sutures" harvested from the healthy branches. Detailed drawings for the surgery and suturing are shown on page 129 of
Sepp Holzer's
Permaculture: A Practical Guide to Small-Scale , Integrative Farming and Gardening. He describes the bridge grafting procedure as follows:
"Scions are cut to size and angled at the ends (as with cleft grafting). T-shaped slits are made in the rootstock [perpendicular to] the damaged area [where] the bark is peeled back slightly. Now the scions are inserted into the [T] cuts [thus mending the gap].... Then the graft is bound with raffia and painted with grafting wax; The buds, as always remain uncovered."
Since the bud(s) will produce a new branch, the "bridge" should probably be positioned so the bud(s) will grow in the desired direction.
Like I said, I would do this if it were my tree mainly because I'm curious about bridge grafting and would like to see if this could actually save this cherry or help me learn so I could use the technique on a future tree.
Good luck Wi!