Leather disease?

I'm not sure what happened but woke up today to find a white patch on my leather, its on the curl of the "ruffle"

I did the touch test and did indeed disintegrate.

I have never had an illness with a leather and I'm not sure what I should do? Do I dip it, trim off the effected area?

My parameters:

Sg 1.025
Temp 80-81
Nitrate 5
Phos 0
Alk 7.3
Ca 420
Mag 1140

 

Some pics

 

Try increasing the flow. I wouldn't cut it.

 

He's in a high flow area, when I increased it he was pissed off...this coral provides me new challenges regularly.lol

 

They take a long time to adjust to flow but I guarantee they like strong random flow. Try not to touch or move it. They definitely don't like it. Do you have any peppermint shrimp or coral nibblers?

 

No, I got rid of my peppermints when they destroyed a brain.
The leather has been in the tank for months, other than the blenny that enjoys perching on it, I have seen nothing else bothering it.

It currently is in a spot near a powerhead but not in direct flow. I attempted having it closer to flow but it shrunk up and wouldn't open.