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I’m interested also.
I have the same thing in one of my tanks but only one rock. I would take the rock out, pick all the red bubbles off and put the rock back in. It would never go away and be back in a month. It has never spread to the other rocks so I just leave it alone now.
But, I always just thought it was some kind of red bubble algae.
I had some stuff growing on a few rocks that I wasn't sure about. I took the drastic approach and put them in the oven for an hour at 350 (it stunk). I then treated them like uncured rock and "cured" them again before putting them back in the tank.
It did the trick. I've got a couple of pieces now with hair algae on them that I can't get off. I'm thinking of baking these rocks too.
They've been in my nano from the start (over a year ago) and I've never had a problem with them. They spread a little but then somehow "weed" themselves out and keep in check.
They could either be colonial sea squirts or a fleshy red alga. If they are the former, they will be tough and "rubbery" in consistency. If the later, they will be very slippery, rather easily deformed by simple pressure and "pop-able." I think they are the colonial sea squirts or ascidiaceans. These are harmless (in most cases) filter feeders, you may find more about in Issue 7 of AHABS."
So far, I think they are the fleshy red algae and not the sea squirts, I took one out of the tank today and they were definitely squishy and easily "pop-able".
Yes, it does sound like a red alga. Generally, these fleshy types are not particularly rapidly growing. I have had them from time to time in my tanks and have considered them more of a decorative item than a nuisance, but such a designation is much like beauty, being in the eye of the beholder.