they jus naturally pop up. sucks that its where it is, ya jus cut it off and paint some dip on the injured area to prevent necrosis or any other other kind of bad growth
they are generally harmless but like the prev poster said - it sucks for it to be where it is overgrowing your flowerpot
they are caused by nutrient levels. try airing it out - display sponges are very sensitive to air but I'm not sure about these varieties. physical removal is probably your best bet (scrap it off with something).
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