Yes that is a photosynthetic purple gorgonian. I have the same thing. It's bullet proof. Every so often it "molts". It's a way of keeping algae off. Don't be alarmed. Sometimes mine looks like crap. Then a day or two later it is back to normal. Mine is in an all SPS tank. High light high flow. I have had it for a long time and it has been in a great many places in the tank and continues to grow.
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