Can't really see what the coral is, but my Hydnophora will drop a ball of tissue every once in awhile that looks like "melting" coral. then the blob that melts off will start growing also. I wouldn't worry as long as the rest of the coral is fine, my guess is reproduction.
Just like you say, it looks like the coral is "melting"... the good news is, each "drop" will be a miniature copy of the mother coral. Keep watching and take (and post) more pics as the process continues.
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