Just about all wrasses need a sand bed to sleep in.
I've had my red corris now for over a year. Got it from a friends tank. I've never seen him bother a thing. The only problem I saw was he liked to flip over my rocks and frags that were in the sand bed. Not that he was bothering them, but he was looking for food under them.
Mine has now reached his adult coloration and that pic you posted does nothing for the way the colors really look. The blue spots are a deep blue that almost glow, same with the yellow tail. The face on mine is more of a peach color that fades into the orange body. he's about 4" long now. I did see some at a wholesalers that were about 6" long once.
As for having sand to sleep in, I met a guy local here who had moved his tank temporarly into his gargae while he was remodeling his house. Instead of filling it back yp with sand, he just put in a tupperware bowl in the corner with sand in it. Sure enough, his wrase found it and that is where he goes to sleep. Funniest thing. He laso protects his "bed" from the other fish as well.