This species inhabits primary lowland forest (with roosts found above small waterways [T. Martin, J. Monkhouse, and D. O'Connell in litt. 2020], although is not necessarily associated with water) up to 1,000 m, but chiefly below 600 m, and has also been recorded from tall secondary and selectively logged forest (del Hoyo et al. 2020).

C. fallax is patchily distributed across mainland Sulawesi Indonesia, as well as on Lembeh Island (BirdLife International 2001), where it is generally scarce (del Hoyo et al. 2020), and Buton Island, where it is uncommon (Martin et al. 2012). 

Conservation Actions Underway
It occurs in several protected areas across Sulawesi; including Tangkoko DuaSudara Nature Reserve, Manembonembo Nature Reserve, Panua Nature Reserve, Gunung Ambang Nature Reserve, and Dumoga-Bone National Park (del Hoyo et al. 2020 and references therein). It also occurs in Lambusango Forest Reserve and Buton Utara Nature Reserve on Buton Island (T. Martin, J. Monkhouse, and D. O'Connell in litt. 2020), 

Conservation Actions Proposed
Conduct repeated surveys throughout the species's range to determine its current status and assess population trends. Conduct ecological studies to identify its precise habitat requirements and response to habitat degradation or fragmentation. Increase the area of suitable habitat that has protected status and safeguard against logging and agricultural encroachment.