Any advice on rescuing this:
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It's like this for about 4 days. No idea what happened but I suspect Clownfish as it tried to host.
I noticed that the flesh was more loose before and closer to the edge, freely floating, while now it somehow positioned itself in the center of the skeleton.
That coral looks terribly bleached, is it a torch coral? With mine, the heads that retract don't make it.
What lighting do you have? Being that bleached, it can't process light for food anyway so I would target feed it ... phytoplankton or mushed up fish food. I actually saved a very bleached brain coral by soaking pellets, smashing them into a 'broth' and using a medicine dropper to gently target feed directly into the mouth. Took a couple of weeks but now it's healthy again.
Iodine definitely helps. I'm sure you have read that it shouldn't be over .06 ... that said, mine often reads .09 but the corals look better so I attribute that to deviation in the test kits. Best thing is to look at the appearance, if they look good then you're probably ok. I am NOT recommending overdosing, just sharing my experience. I don't test for iron so i can't comment on that. As far as lighting goes, it looks like you have a hammer right next to this coral that has good color so you are probably ok... admittedly not an expert on lighting. It may also be that there is a little 'warfare' going on between the two so maybe separate them a little more. Again, i would definitely target feed because bleaching means no zooxanthellae, which means it's not getting any nutrient from the light anyway.
What happens if you gently blow it with a turkey baster? Is there slimy stuff that comes off? From what I can see, what's there looks healthy. In other posts on this thread, it's recommended to knock off the sharp edges of the exposed skeleton. I did that with a bubble coral that got over heated and it looks to be doing MUCH better. I used a wooden sculpting tool ... kept the coral under wanter and just gently knocked off the sharp parts. Suggest you try that and maybe remove the coral for a dip in CoralRx (mixed with tank water) ... return it to the tank and see what happens. I'd definitely put as much distance between it and the torch and give both some decent circulation ... not directly on them but swirling around them so that they wave gently. Your other corals appear to be doing well and have good color. I'm with you... don't like to cut on them especially when they're already distressed. While you have it out of the water, smell it. If it's rancid I'd get rid of it.