If this was uncured liverock, I'd say its bacteria, breaking down the dead/decaying stuff on the rock. If it's bacteria, you will be able to siphon it out (and you should, you don't need that much dead stuff fueling an algae bloom). If it's sponge, it won't siphon out (although you may be able to dislodge and break it off in chunks).
FWIW,
Kevin