I misunderstood your original post, I thought you were saying that it stayed this way all night. The euphyllia of mine that are in higher flow areas close up more tightly at night as they no longer are undergoing photosynthesis and have no need for staying open and therefore can afford to retract further. Just because the lights are on doesn't mean the coral are still in their photoperiod (~8 hours in a 24 hour period). Anyways that was what I was referencing sorry it did not apply to your situation.
As for the lighting it is possible as gold torches IME seem to do better under lower light then my green euphyllia. I have my gold torch about 24" from my kessil while my todds torch is about 16". When I attempted to move the gold closer it appeared visibly stressed.
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