No don't melt it! It is an orange ball corallimorph (Pseudocorynactis caribbeorum). Is not very common and typically noctural. Not much is know about there care requiremets, but I had several for a couple of years. Good luck and enjoy it!
I had a couple at one point, like poconofishy said, they usually only extend at night or in a dark area. If you have a small piece of meaty food, you can feed it. The little ball ends are somewhat sticky.
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