Caluerpa is an aggressive grower when it has favorable conditions. It spreads with shoots that "grab" your live rock, or anything else it can grow on, with root-like footholds. Once it grows like that, the best way to remove it is to get a good grab on a shot and tug at it, attempting to avoid splitting the shoot and instead pull it off the surface that it's growing on. Otherwise, it will send new growth shoots off from any place where it continues to remain on the rock or other surface. It takes some attention and it most likely won't be able to be done all at one time. If it's growing on your Palys and threatening it that way, you might want to take the rock in your hand and use some kind of implement, like the hook-kind that are sold in pharmacies for getting between teeth to completly remove it from the rock.
Some people recommend putting a Tang in a tank when caulerpa shows uncontrolable growth, but there is no guarantee that any particular Tang will pay any attention to caulerpa.