Pink/irritated wall hammer flesh

[paddle41773]

Received this wall hammer in the mail from Divers Den. Was alone in bag. Has this reddish pink area that looks like inflammation/irritation. Dipped in Bayer then Iodine then to QT. Anyone seem anything like this before?

 

[P-Dub]

Looks like a sponge. Might be a coral boring variety. Take a toothpick and poke where you see the two darker red dots. If it goes in the skeleton, that is what it is. If it is a coral boring sponge, it's not likely the coral can be saved.