Fragged Leather Inside Tank, Mistake?

[splix]

I've got a leather thats been growing like crazy. I had to frag it back because it was starting to touch other corals. There was no real easy way to get to the pieces I needed to cut, so I just took my chaeto cutting scissors and went to it. I took off 2 decent frags, and had to do it inside the tank since the leather is attached really well to a lot of large rocks. When I cut it, it released a bunch of "dust" into the water.

Since doing it, most of my fish are severely ticked off to the point they're not even eating. They're all hiding, and most noticeably, my clownfish that I've had for over a year is just sitting in the sand which is not like him at all. Usually when I feed, it's frenzy. I just tried to feed 30 min after cutting the coral and a couple wrasses ate but that was it. The rest are just hiding.
Did I just screw up my tank?

I'm not 100% sure what the leather is, here is a pic.

 

[aaron23]

I'd suggest doing a water change asap it'll pass eventually but better to be safe and remove all of the leather toxins

 

[splix]

Forgot to mention, I just did a water change and have carbon running now as well.
Would the toxins affect the fish? I figured it would just affect the other corals for a bit until I got them all cleared out.

 

[aaron23]

Yeah it will affect the other inhabitants but they will be ok after the WC and carbon! Nothing else to do but wait

 

[LostInTheDark]

I've cut off pieces of nepthia and have had them spew milk into the tank but it never affected the fish. The skimmer would go nuts sometimes. How big is the tank? It might have been a little much for your system.

 

[splix]

Tank is 125g display with 125g sump (basement sump setup)