You should contact the animal poison control center or take your bird to see an avian veterinarian. Find an Avian Vet I have not seen this toxicity. Usually it is the oils and other treatments that cause the problem, not necessarily the wood itself.
You should not use this or other liters including corn cob in the cage. These are all health hazards. National Animal Poison Control Center Hotlines: 1-800-548-2423 - $30 per case or 1-900-680-0000 - $20 first 5 minutes, plus $2.95 per additional minute.