No.. its not causing any harm,etc.. to your leather..
Its VERY common for leather corals to close up for days or more as they grow/shed skin,etc...
I've had leather corals stay closed for weeks or more only to just come right back out just fine/bigger than before..
They also shed to relief themselves of algae that may have grown on their surface,etc...
And they will tear themselves apart to spread/propagate..
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